There will continue to be upward momentum of rates in 2021, with particular volatility in the retrocession space, although how long these conditions last is uncertain, according to Des Potter, Managing Director, Insurance-Linked Securities (ILS) Origination and Structuring at GC Securities*. ... Continue Reading »
Capital Markets
Catastrophe Bond Activity: Looking Towards 2021
Catastrophe bonds are set to buck the trend elsewhere in the insurance-linked securities (ILS) market, with a strong issuance pipeline for the fourth quarter of 2020 and first quarter of 2021, according to Des Potter, Managing Director, ILS origination and structuring at GC Securities*. ... Continue Reading »
September 2020 Dedicated Reinsurance Capital Update
Guy Carpenter and A.M. Best have re-issued our joint dedicated reinsurance capital estimate for September 2020 of USD 471 billion, down 2.4 percent since year-end 2019. The recent update and change is the result of additional analysis and mid-year reporting from our initial June forecast. ... Continue Reading »
Capital and The Insurance Industry During COVID-19
Vicky Carter, Guy Carpenter Chairman of Global Capital Solutions, International, recently spoke to Mark Geoghegan, Editor at The Voice of Insurance about capital in the (re)insurance industry during the COVID-19 pandemic. ... 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 »
Key Investment Ideas For Insurers For 2020 and Beyond
In times of economic distress, (re)insurance is typically considered by investors to be a defensive sector. This is not to say the sector will be unaffected by the COVID-19 crisis. Access to capital has reduced while carriers’ assets have clearly been hit by lower interest rates, wider credit spreads and an equity crash. A fall back into recession will also hinder growth o ... Continue Reading »
Four Scenarios for the Post-Coronavirus Economy Through the Lens of Post-War Recovery
Economists have been scrambling to model how the recession might unfold. Will the recovery be V-shaped or U-shaped, or will it take more of an L-shape? ... Continue Reading »
Financial Market Resilience: Three Waves of Action for Market Infrastructure Firms in the Aftermath of COVID-19
COVID-19 will play a crucial role in defining how financial market infrastructure evolves over the next decade. In a new report, Guy Carpenter-affiliate Oliver Wyman outlines three waves of management action to help navigate the challenges ahead. The report was written by Oliver Wyman Partners Hiten Patel, Daniela Peterhoff, Michael Wagner and Tobias Wuergler and Principal ... Continue Reading »
The Impact of COVID-19 on Alternative Assets
The rapidly evolving COVID-19 crisis is continuing to create severe political, social, and economic uncertainty that is translating into significant public market volatility worldwide. While the impact on alternative assets is less observable to-date, it is likely to be as significant as that for public markets. ... Continue Reading »
Is Coronavirus About to Cause the Next Global Financial Crisis?
The ongoing coronavirus is extracting a heavy toll on financial markets and investors’ psychological well-being. Much of the focus of headlines has been on the gut-wrenching losses in major global stock and commodity markets, disorienting spikes in equity volatility and plunges in treasury yields. But the shaky foundations of the USD 72 trillion global corporate debt market a ... Continue Reading »
