1. CAT-i Bulletin: Mw 7.1 Fukushima Earthquake, Japan February 13: The earthquake occurred at 23:07 local time, on Saturday February 13. The United States Geological Survey reported the epicenter to be 96.6 km southeast of Sendai, Japan at a depth 49.9 km.
2. Reinsurance Implications of the United Kingdom’s Business Interruption Test Case: The UK Supreme Court issued its widely anticipated decision in the Financial Conduct Authority’s business interruption (BI) test case. The FCA brought the test case to resolve uncertainty for certain BI policyholders affected by the COVID pandemic. Because the test case addressed fundamentally different coverage questions, its findings do not govern the reinsurance response to COVID losses.
3. Chart: Guy Carpenter Global Property Catastrophe Rate-On-Line (ROL) Index – 1990 to 2021: The Guy Carpenter Global Property Catastrophe ROL index was up 4.5 percent year on year, at January 1, 2021.
4. Reinsurance Industry Capital at Year-End 2020: Overall, traditional dedicated reinsurance capital for year-end 2020 was estimated at USD 397 billion by Guy Carpenter and A.M. Best, a marginal increase on year-end 2019.
5. Rate Movements Moderated by Availability of Capacity as Negotiations Center on Pricing and Terms at January 1, 2021 Renewals: Price increases at the January 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.
6. Marsh & McLennan and The World Economic Forum’s 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.
7. Chart: Significant Insured Catastrophe Losses 2011 – 2020: Based on Guy Carpenter tracking, large losses generated near USD 80 billion of loss in 2020, an above-average number without considering COVID-19.
8. Community-Based Catastrophe Insurance: A Model for Closing the Disaster Protection Gap: A new report from Guy Carpenter, Marsh & McLennan Advantage and the Wharton Risk Management and Decision Processes Center, Community-Based Catastrophe Insurance: A Model for Closing the Disaster Protection Gap, sets out an innovative model to deliver insurance and help communities close the disaster protection gap.
9. Chart: U.S. Property Catastrophe Rate-On-Line Index – 1990 to 2020: The chart shows the Guy Carpenter U.S. Property Catastrophe Rate-on-Line Index for the period 1990 to 2020.
10. Key Cyber Risk Concerns and Claims Trends: The similarities between a pandemic and a cyber attack should have all insurers reconsidering their stress scenarios. Key cyber risk concerns can be divided broadly into three categories, those related to silent cyber (non-cyber insurance policies that are liable for a cyber loss), claims trends and the effects of COVID-19.
*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.