1. Clarity Over Coverage is Critical as COVID-19 Casts a Shadow over January Renewals: Reinsurance renewal negotiations are delicately poised, with increasing pressure on rates, economic uncertainty and disputes over COVID-19 wordings putting long-standing relationships to the test, according to a recent article in Insurance Day from Massimo Reina, CEO for Continental Europe at Guy Carpenter.
2. Why 2020 Has Made the Ever-Evolving Cyber Landscape Even More Dynamic: The insurability of systemic cyber risk will be one of the defining issues of the next decade for the (re)insurance sector. Rapid technological changes and digitalization in particular have already transformed the characteristics of risks assumed by the (re)insurance market. As companies depend more on technology to conduct business, they are also increasingly subject to technology’s unique vulnerabilities.
3. Leading Up to January 2021 Reinsurance Renewals: Guy Carpenter’s new briefing, Leading Up to January 2021 Reinsurance Renewals, highlights the myriad market developments providing the backdrop to January 1, 2021 renewals. The topics range from COVID-19-related losses and rate movements at the mid-year renewals, through tightening capacity across certain insurance classes and loss developments on long-tail lines of business.
4. Our Work Lives Will Not Return To Normal After The Pandemic: What a double-edged sword hope can be. When the pandemic first struck, it fueled our efforts to unify and overcome a crisis of unknown proportions. But now the hope has been somewhat dashed, and this is testing even the toughest organizations, according to Keith McCambridge, Partner, Organizational Effectiveness at Guy Carpenter-affiliate Oliver Wyman.
5. Chart: Top 10 Largest Insured Losses vs Projections for COVID-19: The chart in the link below shows how industry loss estimates for COVID-19 put forward by a number of entities compare to other major insured events, in inflation-adjusted terms.
6. COVID-19: The View From the Marketplace: Throughout the COVID-19 pandemic, Guy Carpenter has connected with clients and business associates to gather the key questions health insurers are asking along with the range of potential outcomes. In support of this goal, Guy Carpenter hosted a webinar, The Impact of COVID-19 on Medical Reinsurance, and asked 109 leaders in the health insurance industry to provide their input on key questions related to the impact of COVID-19 on the industry.
7. Legionella: Risks during Lockdown and Re-Opening Safely: As COVID-19 continues to upend how businesses interact with technology and workers around the country continue to operate from home offices, the reinsurance market sees a number of emerging trends that present both challenges and opportunities. The impact of COVID-19 has had far-reaching effects. As people slowly return to the new normal, a number of new challenges are presenting themselves, according to Darren Holmes, Senior Vice President at Guy Carpenter-affiliate Marsh.
8. The Changing Nature of Risk: There is an old adage that “adversity builds character.” However, before adversity builds character, it reveals character, and the numerous catastrophes that have occurred over the last several years combined with the ongoing pandemic have clearly revealed the character of the insurance industry.
9. Managing Renewals in a Challenging Market: For more than a decade — starting in the mid-2000s — insurance pricing steadily declined, even amid significant economic and enterprise growth. In late 2017 and 2018, however, commercial insurance pricing started to increase, according to a report from Guy Carpenter-affiliate Marsh.
10. 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. Wind and wildfire-exposed programs once again played a prominent role in driving the index higher, with COVID-19 acting as an accelerating force.