Healthcare Organizations and Medical Risk: What HCOs Need to Know About the Medical Risks They Own: As healthcare organizations transition their business models from “fee for service” to “fee for value,” margin pressure, capital allocation and expense management are pitfalls to a successful transition. We argue that the creation of an integrated risk strategy framework to think about medical risk collectively (the medical risk continuum) will empower healthcare organizations to manage this transition more effectively and ultimately lower healthcare claim risk costs.
A Dynamic Approach to Managing Life Reinsurance Arrangements: The traditional life reinsurance model typically involves perpetual treaties linked to an underlying product. In order to create alignment between the contracting parties, the treaty would follow the underlying terms of the product. However, the treaty structure may concurrently include provisions that reduce alignment between the insurer and reinsurer, to the insurer’s detriment. This approach is often wrapped in the reinsurer’s “value proposition” – providing services to support the pricing, underwriting and claims management of the underlying product.
John Neal: Lloyd’s must seize “once in a generation” opportunity to embrace digital transformation: The Lloyd’s market must evolve and evolve fast or risk driving itself into irrelevance. This was the warning from Lloyd’s chief executive Mr. John Neal as he addressed delegates at the 2019 MMC Rising Professionals’ Global Forum in London today.
Chart: Combined Ratio for Guy Carpenter Reinsurance Composite, Year-End 2018: Chart presents combined ratio of the Guy Carpenter Global Reinsurance Composite, 2005 through year-end 2018.
Finding the Elusive Cyber Loss Curve Can Pay Big Dividends for Financial Institutions: What is the likelihood that your organization will experience a material cyber event in the next 12 months? Is the risk greater than 50 percent? Less than 25 percent? These questions are ever-present on the minds of risk managers, who long for at least a practical – if not precise – answer.
And, you may have missed ….
First Singapore Catastrophe Bond Sets Stage for ILS Expansion in Asia-Pacific: The first catastrophe bond has been issued out of Singapore. This highlights the potential of the insurance- linked securities (ILS) market in the region, and is aligned with the city-state’s efforts to establish itself as a global hub for Asian risk transfer. The bond is sponsored by Insurance Australia Group (IAG) as part of its 2019 catastrophe aggregate reinsurance cover and represents the first such transaction by the company.