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Guy Carpenter
GC Capital Ideas

Understanding Flood Modeling

Virtually all catastrophe models are based on three fundamental components: hazard, vulnerability and financial impact. The hazard component describes the full range of risk by incorporating information on thousands of possible events simulated by extrapolating data from historical observations, according to Guy Carpenter colleagues Narathip Sutchiewcharn, Senior Vice President ... Continue Reading »

Hurricane Delta Makes Landfall in Mexico; Strengthening on a Path toward US Gulf Coast

Hurricane Delta rapidly intensified to a category-4 hurricane during the day on Tuesday, attaining wind speeds of 145 mph on a path toward the Yucatan Peninsula.  A strong than expected shear environment caused Delta to weaken prior to landfall as a category-2 hurricane in Puerto Morelos, Mexico at 5:45 am CDT Wednesday, bringing destructive wind, rain and storm surge to a ... 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 »

Parametric Insurance Can Boost Resilience for the Public Sector

In the wake of a natural disaster, traditional insurance can help restore insured assets to their status prior to the loss. It may not always be desirable, however, to restore a situation that led to a vulnerable state in the first place. The public may want — and need — to create new approaches to urban planning, construction or water management that leverage lessons from the d ... Continue Reading »

Hurricane Delta Much Stronger, Landfalls Anticipated for Cancun, MX and US Gulf Coast

Delta’s has rapidly intensified by 70 mph in the last 24 hours to category-2 strength. The last Atlantic storm to intensify more in 24 hours was Hurricane Wilma in 2005 which intensified an incredible 110 mph from 75 mph to 185 mph. Near ideal conditions for further strengthening will continue over the next 24 hours before making landfall near Cancun, MX as a major hurricane. L ... Continue Reading »

Climate Change is an Opportunity for Business to Thrive

The reinsurance market exists to help risk aggregators — often insurance entities — manage the volatility embedded in their obligations to policyholders when adverse events, such as floods, wildfires and hurricanes, impact many of their policies at the same time. As climate change and the associated increase in natural catastrophe events alters the contemporary risk landscape, t ... Continue Reading »

Tropical Storm Delta Late Week US Gulf Coast Threat

Upgraded Monday morning to a tropical storm, conditions in the western Caribbean and southern Gulf of Mexico are favorable for intensification into a hurricane by mid-week, with rapid intensification likely. Thereafter, Delta will make a turn to the north and eventually northeast with landfall expectations by NHC most likely as a category-2 hurricane on the central Gulf Coast ... Continue Reading »

GC Capital Ideas Top Stories: Third Quarter, 2020

1. Mid-Year 2020 Reinsurance Renewal - Overview: GC Capital Ideas recently featured three posts covering some of Guy Carpenter’s observations on the mid-year 2020 reinsurance renewals. Read the article >> 2. Silent Cyber – No Longer Silent: Silent (or non-affirmative) cyber refers to cyber-related exposure within many all-risk general insurance products. If no exp ... Continue Reading »