1. Rate Movements Moderated by Availability of Capacity as Negotiations Center on Pricing and Terms at January 1, 2021 Renewals: Price increases at the January 1, 2021 reinsurance renewals were moderated compared to initial expectations by abundant capital levels and an increased willingness on the part of reinsurers to deploy capacity in several sectors, according to Guy Carpenter.
2. CAT-i Bulletin: Typhoon Vamco (Ulysses): Typhoon Vamco made its first landfall on Patnanungan Island (Quezon Province, Philippines) around 10:30 PM local time on November 11 as a category-1 equivalent on the Saffir-Simpon scale. The typhoon then gained category-2 strength before crossing Quezon and then Luzon. The system caused extensive flood damage, with Metro Manila seeing its worst flooding in years.
3. Video: (Re)insurance Startups – The Class of 2020: As capital continues to be drawn to the opportunity of improved pricing conditions across the (re)insurance market, the emerging class of 2020 (re)insurance startups is expected to bring both long-term and committed solutions to brokers and cedents, according to Lara Mowery, Global Head of Distribution at Guy Carpenter.
4. Chart: Strong Growth in Cyber Premium Volume: The chart, generated from A.M. Best data and research, shows the strong growth in premium volume for the property and casualty (P&C) industry cyber security segment.
5. COVID-19 Coverage Uncertainties and 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.
6. Chart: U.S. Property Catastrophe Rate-On-Line (ROL) Index – 1990 to 2020: The following chart shows the Guy Carpenter U.S. Property Catastrophe Rate-on-Line (ROL) Index for the period 1990 to 2020.
7. CAT-i Report: Typhoon Vongfong (Ambo): In the Northwest Pacific Basin, Typhoon Vongfong made landfall in the Philippines on May 14 around 12:15 PM local time (0415 UTC), in the municipality of San Policarpo, Eastern Samar Province. Just after moving inland, the typhoon carried 1-minute sustained winds of around 185 km/hr (115 mph), a category-3 on the Saffir-Simpson Scale according to the Joint Typhoon Warning Center (JTWC).
8. Catastrophe Bond Activity: Looking Towards 2021: Catastrophe bonds are set to buck the trend elsewhere in the insurance-linked securities (ILS) market, with a strong issuance pipeline for the fourth quarter of 2020 and first quarter of 2021, according to Des Potter, Managing Director, ILS origination and structuring at GC Securities.*
9. Leading Up to January 2021 Reinsurance Renewals: Guy Carpenter’s new briefing highlights the myriad market developments providing the backdrop to January 1, 2021 renewals.
10. Marsh & McLennan and The World Economic Forum Present The Global Risks Report 2021: The 16th edition of the Global Risks Report, published by the World Economic Forum with support from Marsh & McLennan, highlights the disruptive implications of major risks, including the COVID-19 pandemic, that may reshape our world in 2021 and over the next decade.
*Securities or investments, as applicable, are offered in the United States through GC Securities, a division of MMC Securities LLC, a US registered broker-dealer and member FINRA/NFA/SIPC. Main Office: 1166 Avenue of the Americas, New York, NY 10036. Phone: (212) 345-5000. Securities or investments, as applicable, are offered in the United Kingdom by GC Securities, a division of MMC Securities (Europe) Ltd. (MMCSEL), which is authorized and regulated by the Financial Conduct Authority, 12 Endeavour Square, London, E20 1JN. Reinsurance products are placed through qualified affiliates of Guy Carpenter & Company, LLC. MMC Securities LLC, MMC Securities (Europe) Ltd. and Guy Carpenter & Company, LLC are affiliates owned by Marsh & McLennan Companies. This communication is not intended as an offer to sell or a solicitation of any offer to buy any security, financial instrument, reinsurance or insurance product.