Why 2020 Has Made the Ever-Evolving Cyber Landscape Even More Dynamic: Businesses continue to embrace technological innovation despite the fact that doing so may lead to the emergence of new and unforeseen risks. As regulators formalize capital requirements and qualitative measurements of risk appetite in this rapidly evolving market, companies will be required to enhance cyber underwriting and reinsurance strategies, leverage innovative modeling capabilities and develop technical and underwriting risk talent to continue offering clients the best security possible.
The Changing Nature of Risk – Casualty Dynamics: History shows that the insurance market is cyclical, and this is especially true for casualty lines of business. As long-tail lines, the ultimate profitability of a year is not known for many years as changing loss trends and causes may not be recognized until it is too late to protect against adverse development. The casualty marketplace now finds itself in such a position.
Will Companies Remain Empathetic After the Coronavirus: The COVID-19 pandemic has disrupted — and reinvented — the notion of business as usual. For now, the fallout of COVID-19 may overwhelm many companies’ sightlines and operations. Yet, when business and society move past the pandemic and toward a brighter future, the impact — and opportunity — of artificial intelligence and technology will have vastly accelerated. So will a more expansive, empathetic view of organizational purpose.
The Changing Nature of Risk: The (re)insurance sector is well-versed at navigating market-changing events, and while the impact of previous shock events such as Hurricane Andrew, the terrorist attacks of September 11, 2001 and Hurricane Katrina may have resulted in a loss of capital and reduced capacity in the short-term, the market responded to each occasion by innovating, working with governments and attracting more capital in the long term.
Update – How Will Climate Catastrophes Be Handled in the Face of Coronavirus: As the year got underway, climate change was widely viewed as the most serious threat to global prosperity. The annual risk perception survey of the 2020 Global Risks Report, published by the World Economic Forum in partnership with Marsh & McLennan, saw climate-related risks dominate the rankings in terms of both likelihood and impact. Since then, climate change has fallen down the agenda as COVID-19 has risen up it.
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California Wildfire Fund – Protecting our Planet and the Public Purse: Following the devastating wildfires that raged across California in 2017 and 2018, the state’s legislature and governor took steps to fund mitigation efforts and provide post-disaster relief to affected homeowners. Guy Carpenter’s Protecting our Planet and the Public Purse report takes a look at how public-private partnerships such as the California Wildfire Fund can aid these efforts and address natural catastrophe risks.