Why We Need Community-Based Catastrophe Insurance: As disaster losses escalate around the globe, the difference between economic damages and the amount that is insured — known as the natural catastrophe protection gap — is an issue of increasing focus for community leaders and policymakers.
Mid-Year 2020 Reinsurance Renewal – Guy Carpenter U.S. Property Catastrophe Rate-On-Line (ROL) Index: The U.S. property catastrophe Rate on Line (ROL) index for January through July renewals was up 12 percent year-on-year.
Loss Reserve Protection Covers – Solutions for Achieving Capital Optimization: The COVID-19 pandemic clearly presents significant challenges to insurers, but it is also becoming increasingly clear that (re)insurers are likely entering a far more favorable underwriting environment. After years of relative stability brought about by strong capitalization, the landscape for the sector has undeniably changed, with pressure on the asset side of balance sheets coinciding with high natural catastrophe losses, shrinking reserve cushions and social inflation.
Chart – COVID-19 Announced Losses Versus Top-Down Industry Estimates: Loss activity through the first half of 2020 was dominated by COVID-19. The chart in the link below shows the current average of all reported ranges of COVID-19 announced losses compared to top-down industry estimates.
September 2020 Dedicated Reinsurance Capital Update: Guy Carpenter and A.M. Best have re-issued our joint dedicated reinsurance capital estimate for September 2020 of USD 471 billion, down 2.4 percent since year-end 2019. The recent update and change is the result of additional analysis and mid-year reporting from our initial June forecast.
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Evolving a Private Pandemic Market: James Nash, International CEO at Guy Carpenter, noted in a recent interview that the ultimate backstop for all systemic risk is the taxpayer. But insurers have a role to play in covering these risks. “The question is creating a risk framework around the national risk register for those either globally systemic risks, of which there are not many, and national risks. Not just creating a public-private partnership but also creating private market capacity around the scheme,” Nash said.