How Ransomware Threats and Regulatory Pressures are Driving Cyber (Re)insurance Sales: What is motivating cyber (re)insurance sales? Guy Carpenter’s Cyber Year in Brief and 2020 Outlook explores how the threat of ransomware and associated high costs of regulatory actions have driven clients to purchase cyber insurance cover for the first time, or to reassess the adequacy of currently purchased limits.
2020 Western North Pacific Tropical Cyclone Predictions – Details of Findings: The Guy Carpenter Asia-Pacific Climate Impact Centre (GCACIC) at the School of Energy and Environment, City University of Hong Kong, has released its 2020 predictions for tropical cyclone formations and landfalls using a regional climate model focusing on East Asia. This model uses information from a global climate prediction model made available in March 2020.
June 1, 2020 Reinsurance Renewal – COVID-19 Looks Set to Rank Among the Sector’s Most Expensive Events: Although considerable uncertainty remains over its ultimate cost, COVID-19 looks set to rank among the sector’s most expensive events. The pandemic has the potential to bring unknown loss impacts. It is also likely to be one of the slowest developing catastrophes that carriers have ever encountered, likely creating a prolonged period of uncertainty.
Boards Must Focus On the Horizon – How to Best Position for COVID Recovery: Obligations for non-executive directors (NEDs) are easily stated but executed with difficulty. Arguably the most challenging responsibility under stress is protecting long-term shareholder value. While this necessitates a focus on survival in the short term, it means boards must divert sufficient attention to what comes next: recovery.
June 1, 2020 Reinsurance Renewal – The Market Reevaluates Exposures as Conditions Tighten: Even before the COVID-19 crisis, the reinsurance market was facing an increasingly challenged operating environment. Shifting views of risk, a lack of new capital inflows, higher loss cost trends and deteriorating loss experience led to tightening market conditions at January 1, 2020 renewals. Successive years of losses, sustained prior-year hurricane loss creep and growing concerns over social inflation and climate change had already altered reinsurers’ views and appetites for peak zone exposures.
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Hurricane Season Has Started, but FEMA Is Tied Up With Coronavirus: The Atlantic hurricane season is now officially underway, and The National Oceanic and Atmospheric Administration (NOAA) is predicting it to be a busy one, with an above-average six to 10 hurricanes. Meanwhile the U.S. federal government’s hurricane response agency, The Federal Emergency Management Agency (FEMA), is currently leading the response to coronavirus. Given the likelihood that we will soon see both hurricanes and coronavirus, the U.S. Department of Health and Human Services (HHS) should manage the ongoing pandemic response so FEMA can prepare for coming “coronacanes.”