In a recent interview with The Insurer, Guy Carpenter executives David Priebe, Chairman, and James Nash, International CEO, provide their views on the prospect of nation states coming together to provide a wider solution for cross-border threats like pandemics and cyber. ... Continue Reading »
Pandemic
Update: How Will Climate Catastrophes Be Handled in the Face of Coronavirus?
In recent years, the reinsurance market has established itself as a capable private partner for the public sector, as illustrated in its response to major events over the past 30 years. The sector remains well capitalized, and the expertise developed over decades of dealing with market-changing events, including those related to climate change, puts it in an unrivalled position ... Continue Reading »
Digital Health Systems of Tomorrow: Unexpected Players are Rethinking Healthcare
As the costs stemming from COVID-19 continue to climb, reinsurers are collaborating with healthcare executives on how to mitigate the impacts of the virus on the sector. Virtual health care options are becoming increasingly commonplace, and the growing use of telemedicine and capacity constraints within our healthcare system will potentially dull utilization increases. ... Continue Reading »
Will Companies Remain Empathetic After the Coronavirus?
The transition to working from home has gone incredibly smoothly overall, enabling seamless communication between brokers, cedents and reinsurers. Technological advancement has facilitated this transition but human behaviors are equally important in ensuring colleagues continue to feel “connected” to their co-workers, clients and the overall market. Communication on an ongoing ... Continue Reading »
Risk-Based Capital Stress Testing: Part V
As the world continues to wrestle with the COVID-19 outbreak, medical, economic and societal measures designed to limit the spread of COVID-19 have seen mixed results. Infection and fatality rates are no longer growing quite as fast as they were during March and April; however, many states are still grappling with increasing infection rates. ... Continue Reading »
The Changing Nature of Risk
There is an old adage that “adversity builds character.” However, before adversity builds character, it reveals character, and the numerous catastrophes that have occurred over the last several years combined with the ongoing pandemic have clearly revealed the character of the insurance industry. ... Continue Reading »
Pandemic Poses a New Catastrophe Paradigm: Part VI
COVID-19 has offered a first look into the sheer scale of systemic perils. As the risk landscape continues to shift, there is an opportunity, indeed an imperative, for governments and the risk transfer sector to find new means to collaborate. By leveraging risk management and risk transfer expertise, this partnership can help communities build greater resilience and recover ... Continue Reading »
Pandemic Poses a New Catastrophe Paradigm: Part V
There is precedent for the establishment of a government-led backstop to certain catastrophic loss scenarios. The public-private partnership model is one that has worked particularly well for more established risks that are capable of causing systemic economic shocks. The terrorism market serves as a fine example of how the security of central government backing can mitigate ... Continue Reading »
Pandemic Poses a New Catastrophe Paradigm: Part IV
Catastrophic cyber attacks and pandemics share a common characteristic in that they present threats with the potential for no geographical boundaries. This trait removes the certainty of diversification and makes both perils difficult to model and price. They also bring elevated correlations with financial markets, raising the prospect of simultaneous shocks to the underwriting ... Continue Reading »
Pandemic Poses a New Catastrophe Paradigm: Part III
Pandemics represent only one example of how low-probability, extreme events can cause economic (and insured) shocks, according to a recent Reactions article by Peter Hearn, President and CEO of Guy Carpenter. ... Continue Reading »