2019 Asia Pacific Catastrophe Reinsurance Report: Guy Carpenter has released its 2019 Asia Pacific Catastrophe Reinsurance Report. The report reviews property catastrophe cover trends; market conditions, including losses and pricing; and catastrophe events in each of the major Asia Pacific countries during 2019.
The Burning Issue: Managing Wildfire Risk: In recent years, countries such as Canada, the United States, Spain, Portugal, Greece and Chile have experienced unusually severe fires, claiming hundreds of lives and causing billions of dollars in damage. Wildfires have also broken out in countries previously unaccustomed to the problem. In 2018, for example, northern European countries experienced between 20 and 200 times more area burned than normal.
CAT-i Bulletin: Super Typhoon Hagibis: Typhoon Hagibis made landfall in Japan as a category-2 on the Izu Peninsula in the Shizuoka Prefecture on October 12 around 7 PM local time. Large stretches of the country were hit by strong winds and torrential rainfall, and the Japan Meteorological Agency issued warnings and advisories affecting all prefectures in the Honshū, Kyushu, Shikoku and Hokkaido Islands.
Parametric Risk Transfer – When Does It Make Sense? Parametric insurance provides cover for predetermined catastrophic natural events such as an earthquake exceeding a certain magnitude, a hurricane producing a certain wind speed at a location, or a flood reaching into certain areas. The insured buys a predefined amount of protection that will pay out based on predefined terms regardless of the actual loss incurred. Parametric solutions work as a hedge and, when compared to traditional indemnity, there is often contention about their utility.
A Dynamic Approach to Managing Life Reinsurance Arrangements: The traditional life reinsurance model typically involves perpetual treaties linked to an underlying product. In order to create alignment between the contracting parties, the treaty would follow the underlying terms of the product. However, the treaty structure may concurrently include provisions that reduce alignment between the insurer and reinsurer, to the insurer’s detriment. This approach is often wrapped in the reinsurer’s “value proposition” – providing services to support the pricing, underwriting and claims management of the underlying product.
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Carriers Must Carve Out Distinctive Strategies to Maximize their Potential for Success: Guy Carpenter has completed its annual review of property and casualty (P&C) results and found that competition and change are the only certainties (re)insurers are promised in today’s market.
