1. 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.
2. CAT-i Report on Australia Bushfires – January 8, 2020: 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.
3. Chart – Global Property Catastrophe ROL Index: The Guy Carpenter Global Property Catastrophe Rate on Line (ROL) index is presented for 1990 through 2020.
4. January 1, 2020 Reinsurance Renewals – Retrocession: Reinsurers have ceded increased levels of premium into the retrocession market in recent years by leveraging strong market competition brought by new capital inflows. However, the environment in the retrocession market was challenged at January 1, 2020, characterized by trapped capital, a lack of new capital and continued redemptions from third-party providers.
5. Global Risks Report 2020: The 15th edition of the Global Risks Report has been published by the World Economic Forum with support from Marsh & McLennan. Drawing on feedback from nearly 800 global experts who were asked to rank their concerns in terms of likelihood and impact, this year’s report highlights two core threads across the risks landscape: Intensifying confrontations, both between and within countries, and a heightened sense of urgency around climate, public health, and technology systems.
6. CAT-i Report – M6.4 Earthquake Offshore Southwest Puerto Rico: Southern Puerto Rico was affected by a Mw 6.4 earthquake early on January 7, 2020, after experiencing a Mw 5.8 earthquake the day before. Since late December, the region had been shaken by more than 200 M4+ earthquakes. The North American and Caribbean tectonic plates converge along the southwest and west of Puerto Rico, and this was the source of the recent stronger shaking activity.
7. CAT-i Report – Southern Australia Hailstorms: Severe thunderstorm activity affected large parts of Victoria, Canberra, Sydney and South-East Queensland from January 19-21. The storms produced large hail, damaging winds and flash flooding in many areas across these states. According to the Australian Bureau of Meteorology (BOM), there were ground reports of hail of up to 5 cm (2.5 inches) in diameter across Canberra, Sydney’s south-west and parts of Melbourne.
8. Review of Silent Cyber Coverage on GC Capital Ideas: Here we present the recent stories that GC Capital Ideas has posted 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.
9. 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.
10. 2020 State of the Financial Services Industry Report: Financial institutions in 2020 face a big challenge: creating the business of the future from the legacy they have today. This is revealing a major tension between two opposing mindsets, the vision mindset and the value mindset. The latest edition of Oliver Wyman’s State of the Financial Services Industry report explores how pressure is building to deliver on investment programs and how winning firms will manage the collision between vision and value.