As organizations continue to adapt and respond to the COVID-19 pandemic, understanding its impacts is critical to mapping the path forward as a business, industry and broader society. Virtually bringing together global clients, colleagues and subject matter experts, including those from Guy Carpenter, the recent Marsh & McLennan Better By Design conference provided a ... Continue Reading »
Search Results for: changing nature of risk
The Changing Nature of Risk – Casualty Dynamics: Part IV
Capital management strategies are critical for carriers as they need to find the proper balance between allocating capital to potential past losses and deploying it now to support business growth in a hard market, according to Christopher Ross, Managing Director, Guy Carpenter. ... Continue Reading »
The Changing Nature of Risk – Casualty Dynamics: Part III
History shows that the insurance market is cyclical, and this is especially true for casualty lines of business. Now, in 2020 we are experiencing the impact of COVID-19, which has acted as an accelerant in terms of both the pricing and capacity usage trends previously sought, according to Christopher Ross, Managing Director, Guy Carpenter. ... Continue Reading »
The Changing Nature of Risk – Casualty Dynamics: Part II
The (re)insurance market is grappling with some key uncertainties that impact not only go-forward underwriting and pricing strategies, but also capital strategies for both servicing the legacy portfolio as well as growth as the market hardens, according to Christopher Ross, Managing Director, Guy Carpenter. ... Continue Reading »
The Changing Nature of Risk – Casualty Dynamics: Part I
History shows that the insurance market is cyclical, and this is especially true for casualty lines of business. As long-tail casualty lines, the ultimate profitability of a year is not known for many years as changing loss trends and causes may not be recognized until it is too late to protect against adverse development. ... Continue Reading »
The Changing Nature of Risk: Part V
The opportunities that lie ahead for the insurance sector are vast and complex and will require thinking about risks in terms beyond what is currently known and measurable. Intangible risk exposure is different: it is not geographically contained like a natural catastrophe and is not as explicitly calculable as a burning building. Once-in-a-lifetime innovation like this comes ... Continue Reading »
The Changing Nature of Risk: Part IV
From an insurance and reinsurance product design perspective, addressing climate change is more of a scale and cognitive bias challenge than a product design problem. The industry has a working understanding of the principles underlying the business model and the associated risks, perils, hazards and insured assets, according to John Trace, CEO, North America, Guy Carpenter, ... Continue Reading »
Video: Better By Design – Navigating The Changing Nature of Risk
As organizations continue to adapt and respond to the COVID-19 pandemic, understanding its impacts is critical to mapping the path forward as a business, industry and broader society. Virtually bringing together our global clients, colleagues and subject matter experts, including those from Guy Carpenter, the recent Marsh & McLennan Better By Design conference provided a ... Continue Reading »
The Changing Nature of Risk: Part III
The COVID-19 pandemic and social unrest in 2020 remind us that the insurance industry’s challenges might change on a year-to-year basis, but they will never end. COVID-19 may represent the vanguard of a series of public health crises arising out of climate change, income inequity, fraying social safety nets, demographic imbalances, resource shortages and increasingly stressed u ... Continue Reading »
The Changing Nature of Risk: Part II
The (re)insurance industry entered 2020 with a strong balance sheet, pricing tailwinds and abundant capital. The impact of COVID-19 was sudden and violent and even though the equity markets have recovered from the depth of the crisis, the Standard & Poor’s (S&P) property & casualty (P&C) index (down 13 percent year-to-date) still lags the broader S&P 500 (up ... Continue Reading »
