Changes in the Reliance on TRIPRA: In the United States, the Terrorism Risk Insurance Program Reauthorization Act of 2015 (TRIPRA) is scheduled to expire at the end of 2020. Renewal under its current structure and coverages remains uncertain. As a result, carriers are beginning to explore and, in some cases, to secure, additional reinsurance limits and coverages under the assumption that there is a finite amount of capacity available in the private market, especially for nuclear, biological, chemical and radiological events.
Terrorism Risk Is Declining, but a Closer Look Shows an Ominous, Evolving Threat: Let’s start with the good news: Terrorism risk is declining in many countries. But there’s also bad news: Terrorism remains a dynamic risk and a serious threat to people and organizations.
Asia Region Most affected by Rising Sea Levels: On a global scale, some cities are sinking faster than sea levels are rising, says the Global Risks Report 2019, which was produced by World Economic Forum with the support of Guy Carpenter’s parent company, Marsh & McLennan Companies. Asia will be the worst affected region as a result of a combination of hydrology, population density and asset concentration.
Complications That Impact Cyber Resilience: In an increasingly complex business and cyber landscape, organizations encounter greater challenges when trying to balance their business resilience and cyber security priorities.
Affirmative versus Silent Cyber: An Overview: While the current debate over “affirmative” versus “non-affirmative” coverage has been ongoing for a few years, WannaCry and Petya/NotPetya cyberattacks helped make the issue of “silent cyber” more critical. These two 2017 cyberattacks effectively shifted the conversation from data breach, notification costs and third-party liability to first-party liability insuring agreements due to the extent and expanse of the systematic, large-scale damages they triggered.
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Funding Longevity Risks in Captives: Global life insurance and reinsurance companies continue to look for innovative solutions to the longevity risks in their portfolios – life insurance, annuities and long-term disability programs. Further, pension fund trustees are looking for financially efficient methods of managing the longevity exposure in their pension portfolios. With greater life expectancies in much of the world, fear of pandemics, and financial market challenges, these companies are increasingly interested in forming long-term insurers, particularly in Bermuda, Cayman Islands and Guernsey.
