1.Guy Carpenter Selected by CEA on Wildfire Fund Reinsurance and Risk Transfer Program: Guy Carpenter announced its appointment as the sole reinsurance intermediary for the newly formed California Wildfire Fund, which is currently being administered by the California Earthquake Authority.
2. Significant Wildfire Potential Outlook: Moving into the late summer, weather patterns are favoring seasonal dryness in the western United States, where moderate to severe drought is persisting in the Pacific Northwest, and fuels are drying out and becoming receptive to fire. While fire activity has been slightly below average to date in 2019, the outlook is for normal to above normal wildland fire potential in the western United States through late summer and fall, especially in California.
3. Tropical Storm Dorian – Escalating Threat: Tropical Storm Dorian has regained structure and strength since crossing the Windward and Leeward Islands. It now appears that the storm will pass near or over the Virgin Islands over the coming hours. It is probable that the storm will strengthen to a hurricane later today. Hazards of concern include tropical storm wind conditions, heavy rainfall with some inland flooding, and storm surge.
4. Chart: Significant Insured Losses – 2011 to Q2 2019: Chart exhibits the significant insured losses from 2011 through the second quarter of this year. First-half 2019 losses are at levels below those experienced in first-half 2017 and 2018.
5. A Risk Overview of Wildfire: Today, the frequency and severity of wildfires are garnering greater attention – not only from the media, but also from (re)insurers, catastrophe modelers, mitigation experts and other invested parties.
6. Global Insurance Prices Are on the Rise: Global commercial insurance prices rose by 6 percent in the second quarter of 2019, nearly double the increase that the first quarter had. This increase represents the largest increase in the Marsh Global Insurance Market Index since its inception in 2012. For the third consecutive quarter, composite pricing increased in all geographic regions and across most major product lines.
7. Directors & Officers Liability; Three Emerging Areas to Watch: As business risk evolves, the pressures on company boards and officers are growing. Gone are the days when the main concerns of directors and officers were related to company mismanagement and misrepresentation claims, according to Sarah Downey, D&O Product Leader, at Guy Carpenter affiliate, Marsh.
8. Threat of Cyber Incidents on the Rise: The nature of the terrorism threat facing society has changed considerably in the last 20 years. Previously, governments and (re)insurers structured their mitigation strategies and responses to deal with attacks that were large in scale.
9. Life Insurance Insights: Here we review recent stories on GC Capital Ideas that provide insights on the new paradigm around life reinsurance.
10. Different Captive Structures Offer Flexibility and Value: Single-parent, or pure, captives continue to be the primary structure for captive vehicles, accounting for more than two-thirds of captives globally. However, captive parents have a variety of options for structuring a captive entity.