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 »
capital management
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 »
Accounting Changes Impacting the Reinsurance Landscape – GC@MC 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@MC 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 »
Reinsurance Solutions Continue to Achieve Stability and Growth for Cedents
James Nash, President, International and Julia Chu, Managing Director Contact Shift in buying strategies towards managing volatility Marketplace 'vibrant' as buyers capitalize on full array of products Move to de-commoditize solutions driving up product complexity ... Continue Reading »
Run-off specialists are gearing up for increased flows
Andrew Beecroft, Managing Director, GC Securities Contact Contact Challenging markets and active capital management are encouraging carriers to proactively consider reserve solutions A competitive market for acquisition of run-off assets has broadened New entrants are forming in anticipation of increased flows of legacy business ... Continue Reading »
Insurers Adapting in a Time of Disruption
Here we review recent GC Capital Ideas posts on strategies insurers may utilize to continue to achieve growth in a disruptive environment. ... Continue Reading »
