Post Event Report, Henan Flood – July 17-21: During the period of July 17 to 21, catastrophic flooding affected Zhengzhou, Henan in Mainland China. The flooding was driven by historic intense rainfall caused by the combination of air-flow around the Western North Pacific Subtropical High and tropical cyclones Cempaka and In-fa.
Chart: Guy Carpenter U.S. Property Catastrophe Rate On Line (ROL) Index – 1990 to 2021: The Guy Carpenter U.S. Property Catastrophe Rate on Line Index increased by six percent for January 2021 through July 2021 renewals – approximately half of the increase experienced over the same period in 2020.
Decrypting the Misconceptions Around Ransomware: Ransomware has progressively become a loss trend across the cyber industry, with pricing strategies being recalibrated to account for this growing risk. Guy Carpenter is working closely with our clients to share updates on the threat landscape, deliver cyber industry insights, construct relevant modeling scenarios, and design reinsurance placements to protect these portfolios. The industry is also adopting new risk mitigation, pricing and underwriting tactics in order to course-correct from the impact of this expanding cyber risk.
Loss Reserve Protection Covers: Amid an Unprecedented Confluence of Headwinds, 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.
Global Insurance Market Index – Second Quarter 2021: Global commercial insurance prices increased 15 percent in the second quarter of 2021, according to the Marsh Global Insurance Market Index, a proprietary measure of global commercial insurance premium pricing change at renewal, representing the world’s major insurance markets and comprising nearly 90 percent of Marsh’s premium.
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Workers Compensation Insights for Remote Work: The health threat of COVID-19 is fading in the United States, but the pandemic will likely drive lasting change, including in how we work. Employers need to be ready to manage associated risks, including the prospect of compensable injuries occurring in employees’ homes.