1. Chart – Significant Insured Catastrophe Losses 2011 – 1H2020: The chart in the link below shows significant insured catastrophe losses between 2011 and the first half of 2020.
2. 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. Mid-year excess capacity was at its lowest point since 2012.
3. Risk-Based Capital Stress Testing: As companies continue to navigate the repercussions of COVID-19, it is important that they understand the pandemic’s impact on risk-based capital (RBC). Insurers are dealing with COVID-19’s effects on assets and liabilities, both of which can affect capital levels.
4. Parametric Insurance Can Boost Resilience for the Public Sector: In the wake of a natural disaster, traditional insurance can help restore insured assets to their status prior to the loss. It may not always be desirable, however, to restore a situation that led to a vulnerable state in the first place. The public may want — and need — to create new approaches to urban planning, construction or water management that leverage lessons from the disaster.
5. 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.
6. Why We Need Community-Based Catastrophe Insurance: The impacts of COVID-19 on individuals, communities and insurers are continuing to unfold and no doubt present uncertainty. However, the current disruption also serves to highlight the importance of lessening reliance on federal financial relief and, instead, creating financial resilience at the community level.
7. Political Risk Map 2020 – Mid-Year Update for Asia-Pacific: As the region hit first by COVID-19, many countries in Asia-Pacific experienced a sharp rise in economic risk early in the year. Almost two-thirds (64 percent) of the countries rated by Guy Carpenter-affiliate Marsh JLT Specialty’s World Risk Review (WRR) experienced an increase in their country economic risk rating of more than one, between January and July 2020. In the same period in 2019, no country posted a rise of this magnitude.
8. 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.
9. How to Be a Leader in the New World of Work: Amid the heartbreaking toll of the global pandemic, organizations are hyper-aware of the risk and reality of future disruptions. From economic downturns to the challenge of climate change — or, for that matter, another pandemic — responsive, adaptive companies will survive and thrive in any new normal.
10. Mid-Year 2020 Reinsurance Renewal – Losses: Loss activity through the first half of 2020 was dominated by COVID-19. There is considerable uncertainty embedded in each COVID-19 loss estimate released to date. The current average of all reported ranges (shown in the chart below) is ~USD 60 billion.