Capital management strategies are critical for carriers as they need to find the proper balance between allocating capital to potential past losses and deploying it now to support business growth in a hard market, according to Christopher Ross, Managing Director, Guy Carpenter. ... Continue Reading »
capital management
The Changing Nature of Risk – Casualty Dynamics: Part III
History shows that the insurance market is cyclical, and this is especially true for casualty lines of business. Now, in 2020 we are experiencing the impact of COVID-19, which has acted as an accelerant in terms of both the pricing and capacity usage trends previously sought, according to Christopher Ross, Managing Director, Guy Carpenter. ... Continue Reading »
Loss Reserve Protection Covers: Solutions for Achieving Capital Optimization
The COVID-19 pandemic clearly presents significant challenges to insurers, but it is also becoming increasingly clear that (re)insurers are likely entering a far more favorable underwriting environment. After years of relative stability brought about by strong capitalization, the landscape for the sector has undeniably changed, with pressure on the asset side of balance sheets ... Continue Reading »
Private Equity and COVID-19: Lessons From the Global Financial Crisis
As businesses seek to address both the immediate and long-term effects of COVID-19 on their operations, the reinsurance industry is at the forefront of conversations to create a forward-looking solution for pandemic risk in conjunction with policyholders, insurance markets and key policymakers. Countries across the developed and emerging world are trying to manage the severe ... Continue Reading »
Loss Reserve Protection Covers: Solutions for Achieving Capital Optimization
The COVID-19 pandemic clearly presents significant challenges to insurers, but it is also becoming increasingly clear that (re)insurers are likely entering a far more favorable underwriting environment. After years of relative stability brought about by strong capitalization, the landscape for the sector has undeniably changed, with pressure on the asset side of balance sheets ... Continue Reading »
Making Good Decisions in Bad Times: Critical Capabilities For Effective Liquidity Management During COVID-19
As businesses seek to address both the immediate and long-term effects of COVID-19 on their operations, the reinsurance industry is at the forefront of conversations to create a forward-looking solution for pandemic risk in conjunction with policyholders, insurance markets and key policymakers. Managing liquidity during COVID-19 has become both challenging and critical for ... Continue Reading »
Loss Reserve Protection Covers: Amid an Unprecedented Confluence of Headwinds, Solutions for Achieving Capital Optimization
The COVID-19 pandemic clearly presents significant challenges to insurers, but it is also becoming increasingly clear that (re)insurers are likely entering a far more favorable underwriting environment. After years of relative stability brought about by strong capitalization, the landscape for the sector has undeniably changed, with pressure on the asset side of balance sheets ... Continue Reading »
Cost of Capital and its Use in Valuing Reinsurance
Increasingly, reinsurance is seen as an important element of capital management. Reinsurance decisions are moving away from the reinsurance buyer and towards the finance teams. These teams need to find a way of comparing reinsurance in a straightforward way. Defining the cost of capital for reinsurance means that it can be compared with other capital sources. ... Continue Reading »
Accounting Changes Impacting the Reinsurance Landscape – GC@BB Commentary
Frank Achtert, Head of Capital Optimization, EMEA; Tom Hettinger, Strategic Advisory Leader, U.S./Canada; David Lightfoot, Head of Global Strategic Advisory – Asia Pacific and Latin America Contact With IFRS 17, reinsurance for managing capital KPIs needs to be different in type/scale Users of internal capital models must ensure flexibility of underlying simulation p ... Continue Reading »
A Strategy for Market Volatility: Portfolio Optimization – GC@BB Commentary
Jay Dhru, Global Head of Business Intelligence; Matthew Day, Managing Director; Jack Snyder, Managing Director, Ratings Advisory Contact Rising loss costs and expenses consume an ever larger portion of reserves Optimized portfolio construction as vital as upfront underwriting of a risk Excess capacity is pressuring insurers’ underwriting profitability ... Continue Reading »
