Post Event Report: Hurricane Ida Eastern U.S. Impacts: At least 50 deaths were reported in six Eastern states as Ida’s remnants overwhelmed rivers and sewer systems and spawned several tornadoes. The Mid-Atlantic and Northeast regions had already experienced wetter-than-normal conditions in August, with elevated rivers and water tables inhibiting the ability for natural systems to accommodate Ida’s significant precipitation.
Parametric Insurance: A Tool To Increase Climate Resilience: Parametric covers are alternative risk solutions provided by insurance and reinsurance companies that enable organizations to finance or transfer risk in a non-traditional way. Coverage is triggered based on reaching specific thresholds such as sustained winds of a set speed in miles per hour, providing important protection to pave the way toward recovery from weather disasters. Parametric Insurance: a Tool to Increase Climate Resilience from Marsh McLennan provides more information about how this coverage can complement traditional indemnity policies.
(Re)insurance Industry Continues To Demonstrate Resilience in Challenging Market: The convergence of tangible and intangible challenges facing the (re)insurance industry is creating one of the most dynamic and potentially volatile environments in recent market history. However, (re)insurers continue to demonstrate their resilience through their ability to adapt and respond. This is according to panelists at a recent virtual media briefing, Moving Forward, hosted by Guy Carpenter.
Pandemic Recovery Presents Issues Within Infrastructure: The global COVID-19 pandemic caused significant decline in demand for many infrastructure assets, as demand for air travel decreased, energy use declined and toll-road revenue diminished. As the economy emerges, owners and operators of infrastructure will need to position themselves effectively for a return to full capacity. Marsh McLennan Advantage’s recent report, Built to Last: Infrastructure and Trust in a Changing World, explores this issue, as well as many others connected with infrastructure risk.
Balancing Act: Reinsurance Market to Balance Abundant Capital, Pricing Discipline: In this interview with The Insurer, Guy Carpenter’s Charles Whitmore, President, Global Accounts, discusses how buyers can look forward to a healthy reinsurance market while carriers will be focusing on pricing priorities, and terms and conditions.
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Chart: Surety Results Remain Relatively Stable Over Time: Surety industry underwriting results have remained relatively stable since 2005. Loss activity spiked in the early 2000s, leading to combined ratios ranging between 124 percent in 2001 and 117 percent in 2004 (see chart). Factors contributing to the high combined ratios in the early 2000s included sharply increased competition in the surety sector in the late 1990s, higher loss frequency among large accounts and a lack of sophisticated underwriting tools.