1.Guy Carpenter and CyberCube Report Reveals Potential Impact of Cyber Catastrophe Scenarios on U.S. Cyber Insurance Industry: Guy Carpenter and CyberCube Analytics released the findings of a joint report that explores the size and shape of potential cyber catastrophes and the resulting financial impact on the U.S. cyber insurance market. The report, “Looking Beyond the Clouds: A U.S. Cyber Insurance Industry Catastrophe Loss Study,” examined some of the key drivers of cyber catastrophe scenarios and provided a data-driven view on the potential insured loss figures for the standalone cyber insurance market.
2. 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.
3. CAT-I Bulletin: Typhoon Faxai: In the Northwest Pacific Basin, Typhoon Faxai made landfall on September 9 around 5 AM local time near the city of Chiba in the Greater Tokyo Area, after crossing the Tokyo Bay as a category-2.
4. 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.
5. The Changing Nature of Risk: Today, the (re)insurance sector operates in a rapidly changing and uncertain world. Elevated levels of VUCA – volatility, uncertainty, complexity and ambiguity – are unlikely to relent any time soon. In fact, the impending degree of change over the next decade looks set to transform the risk landscape like never before.
6. InsurTech is Advancing at an Ever-Increasing Pace: While the new disruptive InsurTech companies were initially written off by carriers, citing woefully unprofitable combined ratios, they are trending positively and could soon see underwriting profits. Most recently, given the thousands of companies who have entered the market in the last five years, the focus is on partnerships in various forms.
7. 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.
8. 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.
9. 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.
10. Chart: Global Property Catastrophe ROL Index: The Guy Carpenter Global Property Catastrophe Rate on Line (ROL) index is presented for 1990 through 2019.