Artificial intelligence (AI) has embedded itself into the business landscape. No longer the purview of Big Tech companies alone, firms across various industries are actively integrating AI into their processes, acquiring tech startups and scouting opportunities to deploy the technology in the near future. COVID-19 has only accelerated this trend as businesses have had to ... Continue Reading »
Reinsurance Resilience: Private Market Capital
While concerns regarding the selective appetite of private markets for backing catastrophic risk have unfolded in areas with large losses in recent years, the reinsurance market has become well-versed at overcoming major losses and has navigated a number of capital challenges following major disasters, such as the September 11 attacks, Hurricane Katrina, and the succession of ... Continue Reading »
Week’s Top Stories: March 6 – 12, 2021
Reinsurance Implications of the United Kingdom’s Business Interruption Test Case: On January 15, 2021, the UK Supreme Court issued its widely anticipated decision in the Financial Conduct Authority’s business interruption (BI) test case. The FCA brought the test case to resolve uncertainty for certain BI policyholders affected by the COVID pandemic. Although the Court ruled ... Continue Reading »
(Re)insurance Leaders Weigh In: The Next Forty Years
Peter Hearn, CEO of Guy Carpenter, spoke with Reactions, reflecting on the last 40 years and providing his perspective on what the next 40 will look like for the industry. ... Continue Reading »
Better Pathways Are Available To Manage Risks and Enhance Resilience
Despite some remarkable examples of determination, cooperation and innovation, most countries have struggled with aspects of crisis management during the global pandemic. While it is early to draw definitive lessons, the 2021 edition of the Global Risks Report, published by the World Economic Forum in partnership with Marsh & McLennan, reflects on global preparedness by ... Continue Reading »
Chart: Estimated Alternative Reinsurance Sector Capital
The reinsurance sector continues to demonstrate capital strength and resilience in light of the significant disrupters it encountered in 2020. New capital raises by new and existing participants contributed to the 2020 dedicated capital estimate. ... Continue Reading »
A Roadmap to Implementation of a Community-Based Catastrophe Insurance Program
Once community officials, staff, or residents are interested in further considering community-based catastrophe insurance (CBCI), there is an iterative five-part process that can guide them as they consider possible implementation. These are not necessarily sequential steps – it may be necessary to go back and forth among them multiple times. Before arriving at the decision to ... Continue Reading »
Week’s Top Stories: February 27 – March 5, 2021
Reinsurance Implications of the United Kingdom’s Business Interruption Test Case: On January 15, 2021, the UK Supreme Court issued its widely anticipated decision in the Financial Conduct Authority’s business interruption (BI) test case. The FCA brought the test case to resolve uncertainty for certain BI policyholders affected by the COVID pandemic. Although the Court ruled ... Continue Reading »
Chart: Top 10 Largest Insured Losses Versus Projections for COVID-19
Company-reported COVID-19 losses are near USD 30 billion. When added to 2020 large losses, total loss is approximately USD 110 billion. Using the mid-point of public COVID-19 loss estimates, a number in excess of USD 140 billion is generated. ... Continue Reading »
Future Preparedness for Global Risks
While global risks outlined in the Global Risks Report, published by the World Economic Forum with support from Marsh & McLennan, are dire, lessons from COVID-19 offer an opportunity for mitigation. Global risks — pandemics among them — crystalize differently, but cross-cutting capabilities and systemic approaches to strengthen the overall resilience of countries, ... Continue Reading »