January 1, 2020, Reinsurance Renewals – A Smooth Transition: The (re)insurance sector is undergoing a period of transition: views of risk are changing and risk appetites are responding accordingly. This shift has manifested itself more acutely in the primary market, as underperformance across multiple lines of business over several years has led to market hardening. This is evidenced by Marsh’s Global Insurance Market Index, which shows global commercial insurance pricing (all lines of business and all regions) rose by 8 percent in the third quarter of 2019.
Outbreaks, Epidemics, and Pandemics – Preparedness and Response Strategies: Over the last century, tens of millions of lives have been claimed by pandemics, epidemics, and outbreaks that also have wreaked havoc on businesses and damaged national economies. Despite advances in medicine and improved infection control practices, the novel coronavirus (2019-nCoV) outbreak originating in Wuhan, China — which the World Health Organization (WHO) has declared a public health emergency of international concern — along with the Zika pandemic and Ebola virus and Middle East respiratory syndrome coronavirus outbreaks in the last decade are stark reminders of the social, economic, and geopolitical dangers posed by rapidly spreading disease.
Review of Healthcare Coverage on GC Capital Ideas: Here we review GC Capital Ideas’ recent stories on healthcare and medical (re)insurance.
January 1, 2020, Reinsurance Renewals – Casualty: The backdrop to casualty reinsurance renewals at January 1, 2020 was more difficult, as heightened litigation costs, more generous jury verdicts and shifting attitudes in the United States forced reinsurers to adopt more cautious underwriting positions. Higher loss cost trends, increased frequency of severity and loss development beyond reinsurers’ expectations led to market tightening in specific areas in some select segments, and in particular for the US liability market.
Global Risks Report 2020 – Global Governance Challenges for Businesses: Businesses, just as economies, rely on concerted global technology governance, according to the 15th edition of The Global Risks Report, prepared by the World Economic Forum (WEF) with the support of Marsh & McLennan Companies and Zurich Insurance Group.
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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, according to Shiv Kumar, CEO of MMC Securities.