The real drivers of multimillion dollar medical claims are likely to come in the innovative new treatments that are being developed right now. Understanding what is coming down the Food and Drug Administration (FDA)-approved pipeline is the first step towards being adequately prepared. With the prospect of more innovation driving high cost medical claims, insurers have options ... Continue Reading »
Casualty
Amidst Global Growth, Medical Trends Lift Insurance Costs
Medical trends continue to outpace inflation by almost three times — the average global medical trend rate for 2018 was 9.7 percent, with a similar increase expected for 2019 and an even higher rate for 2020. ... Continue Reading »
GC Capital Ideas Top Stories: August 2019
1.Guy Carpenter Selected by CEA on Wildfire Fund Reinsurance and Risk Transfer Program: Guy Carpenter announced its appointment as the sole reinsurance intermediary for the newly formed California Wildfire Fund, which is currently being administered by the California Earthquake Authority. Read the article >> 2. Significant Wildfire Potential Outlook: Moving into the ... Continue Reading »
Terrorism Risk in Europe
The threat of Islamist extremism remains high in Europe, driven in part by radicalized individuals returning from fighting in Iraq and Syria. Religious extremist attacks in the E.U. will likely target the entertainment and hospitality sectors and public spaces frequented by tourists, according to the 2019 Terrorism Risk Insurance Report, from Guy Carpenter affiliate, Marsh. ... Continue Reading »
What Is Changing in the U.S. Healthcare Reinsurance Market?
Traditionally, healthcare reinsurers offered a robust model to customers, with additional services including claims analysis, access to vendor contracts in high-cost, specialty areas like organ transplant or dialysis, nurse hotlines, pre-natal teams and general expertise on "who to call" regarding specific claimant issues. Low loss ratios — around 65-75 percent — and high lev ... Continue Reading »
Directors & Officers Liability: Three Emerging Areas to Watch
As business risk evolves, the pressures on company boards and officers are growing. Gone are the days when the main concerns of directors and officers were related to company mismanagement and misrepresentation claims, according to Sarah Downey, D&O Product Leader, at Guy Carpenter affiliate, Marsh. Chief among potential risks that boards must now deal with are: emerging ... Continue Reading »
Global Insurance Prices Are on the Rise
Dean M. Klisura, President, Global Placement for Marsh Contact Global commercial insurance prices rose by 6 percent in the second quarter of 2019, nearly double the increase that the first quarter had. This increase represents the largest increase in the Marsh Global Insurance Market Index since its inception in 2012. For the third consecutive quarter, composite pricing ... Continue Reading »
Different Captive Structures Offer Flexibility and Value
Single-parent, or pure, captives continue to be the primary structure for captive vehicles, accounting for more than two-thirds of captives globally. However, captive parents have a variety of options for structuring a captive entity. ... Continue Reading »
U.S. Organizations Continue to Purchase Terrorism Insurance at High Levels
The United States is the world’s largest buyer of terrorism insurance, and U.S.-based organizations continue to purchase coverage at a high rate. In 2018, the take-up rate for TRIPRA coverage embedded in U.S. property policies was 62 percent. Take-up rates have remained close to 60 percent over the last several years. ... Continue Reading »
Threat of Cyber Incidents on the Rise
The nature of the terrorism threat facing society has changed considerably in the last 20 years. Previously, governments and (re)insurers structured their mitigation strategies and responses to deal with attacks that were large in scale. ... Continue Reading »
