Analysis of Potential Medical Claims Related to COVID-19: Examples of the types of direct insurance claims associated with COVID-19 include testing, doctor and emergency room visits, hospital admissions, stays in intensive care units and end of life care. Insurance costs in the United States associated with an inpatient hospital stay for pneumonia (a common complication from COVID-19) range from nearly USD 10,000 to over USD 20,000 (in 2018 dollars), depending on the length of stay, geography, coverage type and comorbidities of the patient.
Silent Cyber – No Longer Silent: Silent (or non-affirmative) cyber refers to cyber-related exposure within many all-risk general insurance products. If no explicit cyber exclusion applies, coverage for losses caused by cyber perils may apply. This underlying exposure’s potential for aggregated loss is currently one of the major issues being considered by the (re)insurance industry.
Privacy First – Is Your Firm Seeing The Big Picture: In this fast paced digital age, businesses have the capacity to collect a tremendous amount of personal information to support their strategies. Customers expect and trust that financial institutions will keep their personal information safe and use it appropriately. In a new paper, Privacy First, Guy Carpenter-affiliate Oliver Wyman outlines a clear strategy to operationalize a firm’s privacy program and meet today’s challenges.
Standard & Poor’s Outlook on COVID-19: Standard & Poor’s (S&P) recently changed its outlook for the global reinsurance sector to negative from stable, as it anticipates a number of negative rating actions and increasingly difficult business conditions for the sector over the next 12 months, according to a recent article from Guy Carpenter. S&P assigned a stable outlook to over 80 percent of global reinsurers and projects that reinsurers will not meet their cost of capital in 2020 for a third year in a row due to COVID-19 insured losses and lower investment returns. Event cancellation, mortgage, trade credit, and directors & officers and errors & omissions are perceived as the lines most sensitive to COVID-19 losses.
Global Insurance Market Index – Second Quarter 2020: Global commercial insurance pricing increased for the eleventh consecutive quarter in the second quarter of 2020, according to Guy Carpenter-affiliate Marsh’s quarterly Global Insurance Market Index, a proprietary measure of global commercial insurance premium pricing change at renewal, representing the world’s major insurance markets and comprising nearly 90 percent of Marsh’s premium. The increase, the largest since the index was launched in 2012, follows year-over-year average increases of 14 percent in the first quarter and 11 percent in the fourth quarter of 2019.
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Capital and The Insurance Industry During COVID-19: Vicky Carter, Guy Carpenter Chairman of Global Capital Solutions, International, recently spoke to Mark Geoghegan, Editor at The Voice of Insurance about capital in the (re)insurance industry during the COVID-19 pandemic. During their discussion, Vicky and Mark examine capital and the industry’s financial health, investor appetite for the insurance sector and the prospects for the emerging class of 2020.