CAT-i Bulletin: Hurricane Dorian: Hurricane Dorian was a long-lived and historic storm that rendered impacts from the Caribbean to Atlantic Canada between August 24 and September 7. It is evident from media reports that the most severe impacts occurred in the northwestern Bahamas where complete destruction of property and infrastructure was reported in Grand Bahama and Abaco Islands. The full scope and severity of impacts still has yet to clarify, but it is apparent that conditions on the Islands will be very difficult for some time.
Looking Beyond the Clouds: A Cyber Insurance Industry Catastrophe Loss Study: Because it is essential to develop a deep understanding of the characteristics of cyber catastrophe events and the financial impact they could have on the standalone cyber insurance market as it exists today, CyberCube Analytics and Guy Carpenter collaborated to help (re)insurers quantify cyber risk by pooling data resources and analytics capabilities to cultivate a view of the potential U.S. cyber industry loss from a range of different cyber catastrophe scenarios.
IFRS 17 and the Value of Reinsurance: An Opportunity in the Challenge: International Financial Reporting Standard (IFRS) 17, issued by the International Accounting Standards Board, is the new financial reporting standard for insurance contracts that will replace the current rules of IFRS 4 and will become effective on January 1, 2022. IFRS 17 will impact the insurance value chain far beyond the areas of actuarial modeling and financial reporting. Key aspects of strategic and operational management may be affected. The new rules for reinsurance may have numerous unintended consequences and some traditional reinsurance products may require modification in order to remain highly effective as capital and volatility management tools.
InsurTech is Advancing at an Ever-Increasing Pace: Fear of disruption was pervasive early in the “InsurTech” era, stemming from indications that major technology companies were entering the sector, such as “Googlezilla” in 2014; Apple’s telematics focused patent activity; and more recently; Amazon’s exploration of insurance aggregator opportunities in the United Kingdom. More current and pressing challenges to incumbency stem from new entrants such as Metromile’s usage-based telematics insurance platform; Lemonade’s big-data powered digital experience for homeowners and renters coverages; and an innovative personal auto telematics-enabled underwriting process at Root Insurance.
Structured Capital Partnerships; An Evolution of the P&C Reinsurance Business Model: Over the past two decades, alternative capital has grown to represent almost a quarter of the total reinsurance industry capital. Insurance-linked securities (ILS), sidecars and collateralized reinsurance continue to provide valuable capacity to (re)insurers, corporates, and public sector entities to efficiently manage capital and risk alongside traditional market solutions.
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Guy Carpenter Appoints David Priebe Chairman: Guy Carpenter announced a key leadership change to further its growth strategy. David Priebe has been appointed to the role of Chairman of Guy Carpenter, effective immediately.