January 1, 2020 Reinsurance Renewals Reflect Asymmetrical Market: Reinsurance renewals at January 1, 2020, were shaped by deteriorating loss experience, a lack of new capital inflows and increasingly challenged environments in the primary insurance and retrocession markets, according to Guy Carpenter. In its initial view of the January 2020 renewal, Guy Carpenter said that while reinsurance supply was largely sufficient to meet increasing demand in all but the most constrained areas, outcomes varied significantly by geography, line of business and cedent, with performance one of the key differentiators.
Review of Silent Cyber Coverage on GC Capital Ideas: Here we present the recent stories that GC Capital Ideas has published on silent cyber, also known as unintended or non-affirmative coverage, the unknown or unquantified exposures stemming from cyber perils that may be triggered within traditional property and liability insurance policies.
Wildfire Risk and Underwriting Strategy: In 2018, California suffered its most costly and deadly fire season to date. The year’s costliest insured loss event was California’s Camp Fire at USD 12 billion — also the most destructive fire in the state’s history. Additionally in 2018, over 100 people perished in wildfires in Greece; British Columbia, Canada, suffered its worst wildfire season in history; in Australia, bushfires burned on Sydney’s perimeters. Wildfires have become larger and more severe, according to Robert Reader, Managing Director, Guy Carpenter.
Chart – Global Property Catastrophe ROL Index: The Guy Carpenter Global Property Catastrophe Rate on Line (ROL) index is presented for 1990 through 2020.
CAT-i Report – Australia Bushfires: Bushfire activity in the last few months has rendered significant impacts to portions of Australia, and especially so in recent weeks with severe impacts reported in New South Wales. The bushfire activity has caused devastating impacts to human life, property, infrastructure, and wildlife.
And, you may have missed ….
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, according to Rob Bentley, CEO, Global Strategic Advisory, Guy Carpenter & Company.