In 2018, California suffered its most costly and deadly fire season to date. The year’s costliest insured loss event was California’s Camp Fire at USD 12 billion — also the most destructive fire in the state’s history. Additionally in 2018, over 100 people perished in wildfires in Greece; British Columbia, Canada, suffered its worst wildfire season in history; in Australia, bush ... Continue Reading »
Property
Terror: The Role of Technology and Analytics – GC@MC Commentary
Terrorism, political violence and other malicious acts differ from other insurable perils in that they are dynamic and adaptive; there is human intent driving the probability and willing the impacts to change. Historic incidents show past trends, but those are only partial drivers of future trends as terrorists adapt their tactics in response to past effectiveness and current ... Continue Reading »
Structured Capital Partnerships: An Evolution of the P&C Reinsurance Business Model – GC@MC Commentary
Over the past two decades, alternative capital has grown to represent almost a quarter of the total reinsurance industry capital. Insurance-linked securities (ILS), sidecars and collateralized reinsurance continue to provide valuable capacity to (re)insurers, corporates, and public sector entities to efficiently manage capital and risk alongside traditional market solutions, ... Continue Reading »
IFRS 17 and the Value of Reinsurance: An Opportunity in the Challenge – GC@MC Commentary
International Financial Reporting Standard (IFRS) 17, issued by the International Accounting Standards Board, is the new financial reporting standard for insurance contracts that will replace the current rules of IFRS 4 and will become effective on January 1, 2022. IFRS 17 will impact the insurance value chain far beyond the areas of actuarial modeling and financial reporting. ... Continue Reading »
Looking Beyond the Clouds: A Cyber Insurance Industry Catastrophe Loss Study – GC@MC Commentary
Because it is essential to develop a deep understanding of the characteristics of cyber catastrophe events and the financial impact they could have on the standalone cyber insurance market as it exists today, CyberCube Analytics (1) and Guy Carpenter have collaborated to help (re)insurers quantify cyber risk by pooling data resources and analytics capabilities to cultivate a ... Continue Reading »
Guy Carpenter Appoints David Priebe Chairman
Guy Carpenter today announced a key leadership change to further its growth strategy. David Priebe has been appointed to the role of Chairman of Guy Carpenter, effective immediately. Mr. Priebe will continue to report to Guy Carpenter's President and CEO, Peter Hearn, and will continue as a member of the company's Executive Committee. ... Continue Reading »
The Changing Nature of Risk – GC@MC Commentary
In a report published this month by Guy Carpenter, we analyze how an accumulation of losses from recent extreme weather events, the specter of climate change and higher loss cost trends in a number of long-tail business lines are forcing carriers to reassess views of risk. Capital inflow levels and risk appetites are responding accordingly, according to Robert Bentley, CEO, ... Continue Reading »
Market Conditions Shift as (Re)insurers Adjust to the Changing Nature of Risk
The growing complexity of risk is manifesting itself in the (re)insurance sector as underwriting assumptions are being challenged, and capital inflow levels and risk appetites respond accordingly. Crucially, the accumulation of losses from a range of diverse natural catastrophe perils in 2017 and 2018 has brought an end to years of soft (re)insurance market conditions as ... Continue Reading »
Weather Sentinel: Hurricane Dorian Passing Outer Banks – Weekend Atlantic Canada Threat
Hurricane Dorian continued to move along the coast of the Carolinas over the last 24 hours, bringing heavy rainfall, storm surge and tropical storm to hurricane conditions for eastern portions of the Carolinas. Considerable tornado activity was also reported, with substantial damage to certain areas evident from initial media reports. Landfall occurred this morning as a ... Continue Reading »
Guy Carpenter and CyberCube Report Reveals Potential Impact of Cyber Catastrophe Scenarios on U.S. Cyber Insurance Industry
Guy Carpenter and CyberCube Analytics released the findings of a joint report that explores the size and shape of potential cyber catastrophes and the resulting financial impact on the U.S. cyber insurance market. The report, “Looking Beyond the Clouds: A U.S. Cyber Insurance Industry Catastrophe Loss Study,” examined some of the key drivers of cyber catastrophe scenarios and ... Continue Reading »
