Companies based in the Northeast United States have traditionally purchased property terrorism insurance at a higher rate than companies based in other regions. Unsurprisingly, 80 percent of companies based in New York purchased terrorism insurance in 2018, tying it with Chicago for the lead among major U.S. cities that are perceived as higher-value targets for terrorist ... Continue Reading »
Property
Guy Carpenter Selected by CEA on Wildfire Fund Reinsurance and Risk Transfer Program
Guy Carpenter & Company today 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 (CEA). Guy Carpenter will provide strategic reinsurance and advisory services to develop a risk transfer and reinsurance strategy for the California ... 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 »
A Risk Overview of Wildfire
Today, the frequency and severity of wildfires are garnering greater attention-not only from the media, but also from (re)insurers, catastrophe modelers, mitigation experts and other invested parties. As the industry searches for better understanding of this dynamic risk, Guy Carpenter’s GC Wildfire Diagnostic (SM) helps carriers differentiate and drive profitable growth u ... Continue Reading »
Weather Sentinel: Significant Wildfire Potential Outlook; August 2019
Moving into the late summer, weather patterns are favoring seasonal dryness in the western United States, where moderate to severe drought is persisting in the Pacific Northwest, and fuels are drying out and becoming receptive to fire. While fire activity has been slightly below average to date in 2019, the outlook is for normal to above normal wildland fire potential in the ... 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 »
Weather Sentinel: Typhoon Lekima, Recent Typhoon Activity
In the Northwest Pacific Basin, Typhoon Lekima is moving ashore on the coast of Mainland China. Just prior to landfall, one-minute sustained winds were around 175 km/hr (110 mph), equivalent to a Category-2 on the Saffir-Simpson Scale, according to the Joint Typhoon Warning Center (JTWC) at 15 UTC August 9. The storm is weakening due to dry air intrusion and increasing land ... 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 »
2019 Terrorism Risk Insurance Report
Terrorism remains a dynamic global risk and a serious threat for people and organizations. The evolution of terrorism risk exposes many countries to complex threats from both international and home-grown groups, as well as individuals acting on their own, known as “lone wolves.” And the evolution of terrorism risk in recent years challenges risk professionals to adopt new str ... Continue Reading »
