Monte Carlo: GC@MC Commentary Roundup: Here we highlight the most popular stories among last week’s GC@MC series, which featured our review of critical issues shaping the reinsurance industry that were the focus of discussions at the Rendez-Vous de Septembre.
Escalating Tropical Activity – Bermuda, Mexico, Texas, Caribbean: Several tropical storms or hurricanes have developed in recent days to pose a potential threat to property, affecting locations in Bermuda, Mexico and the northwestern Gulf. Hurricane Humberto is expected by the National Hurricane Center (NHC) to make close approach to Bermuda, with the threat of tropical storm and potentially hurricane conditions. In the meantime Tropical Storm Lorena should pass near or over the Pacific Coast of Mexico as a hurricane, for the threat of hurricane wind conditions and heavy rainfall. Tropical Storm Imelda crossed the northeast Texas coast yesterday and still carries the threat of heavy rainfall and flooding.
Do Real-Time Event Loss Estimates Inform Model Fitness? Catastrophe model vendors release tools to support assessment of portfolio losses following significant industry events. Guy Carpenter’s general observation is that there are more underestimations than over estimations of events, globally. In this series, we explore this bias and address its relationship to model fitness, according to Imelda Powers, Senior Cat Management Advisor – Asia Pacific, Guy Carpenter.
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 have 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, according to Erica Davis, Cyber Center of Excellence, Guy Carpenter.
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.
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Dedicated Reinsurance Capital: First Half 2019: With the majority of 2019 reinsurance renewals now complete, the impact of significant catastrophe activity has evolved from a year ago. Capital inflow levels and risk appetites are responding accordingly. Crucially, alternative capital dipped slightly in the first half of 2019 for the first time since 2012 to USD 92 billion as investors responded to evolving risk measures and loss experiences over the last 12 months.