From 2014 to 2017, the property and casualty (P&C) industry in the United States grew its collective capital position from USD 686 billion to USD 767 billion, a 3.8 percent compound annual growth rate*. This expansion in capital was achieved during a period when the normalized return profile of the P&C underwriting business was considered to be below the cost of ... Continue Reading »
Capital Requirements
Pushing the Model Boundaries – GC@BB Commentary
Andrew Cox, Managing Director, GC Strategic Advisory; Eddy Vanbeneden, Managing Director, Head of GC Analytics, Continental Europe; Till Wagner, Senior Vice President, GC Strategic Advisory Contact Companies keen to expand internal capital model remit Multiple factors hindering ability to integrate into broader strategic framework New technologies support rapid model ... Continue Reading »
Critical Tool for Making Strategic Enterprise Risk Management Decisions
Thomas Hettinger, Managing Director, Strategic Advisory Contact There are indications that new A.M. Best Stochastic Based BCAR factor assignments may require more capital for companies entering a new line of business than for established writers growing in that line Companies will be under extra pressure to choose growth strategies carefully because of potential capital ... 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 »
Integrating Growth and Enterprise Risk Management – GC@PCI Commentary
Thomas Hettinger, Managing Director, Strategic Advisory Contact There are indications that new A.M. Best Stochastic Based BCAR factor assignments may require more capital for companies entering a new line of business than for established writers growing in that line Companies will be under extra pressure to choose growth strategies carefully because of potential capital ... Continue Reading »
Solvency II: Greater Risk-Driven Management: Part III: Risk Management and Risk Profile
Andrew Cox, Managing Director; Matthew Eagle, Head of GC Analytics - International and Eddy Vanbeneden, Managing Director Contact With the transition from Solvency I to Solvency II, insurers have to contend with a more complex and comprehensive risk management framework than just premiums and reserves. This new framework encompasses the full range of risks exposing a ... Continue Reading »
Managing Volatility Key To Solvency II Transition: Part II
Eric Paire, Head of Global Partners & Strategic Advisory, EMEA Contact "To remain competitive, smaller companies simply cannot afford to operate at 200 percent. This volatility on multiple fronts means that establishing the solvency level that will provide a sufficiently robust capital buffer to withstand these fluctuations is extremely difficult. Is it 130 percent, 150 ... Continue Reading »
Managing Volatility Key To Solvency II Transition: Part I
Eric Paire, Head of Global Partners & Strategic Advisory, EMEA Contact Movement Within Capital Ratios Leading to Uncertainty Amongst Mid-Size Companies The impact of the Solvency II capital ratio on composite life and property/casualty balance sheets is proving more substantial than some companies initially expected, according to Eric Paire, Head of Global Partners & ... Continue Reading »
Solvency II Equivalence In The International (Re)insurance Landscape: Part IV: Asia Pacific Solvency II Equivalence
Andrew Cox, Managing Director; Graham Jones, Senior Vice President; Myra E. Lobel, Managing Director; Eddy Vanbeneden, Managing Director and Steven Sumner, Oliver Wyman, Actuarial Consulting Contact Solvency II's reach and influence extends to Asia Pacific, as Japan and Australia attained provisional third country equivalence status for Group Solvency (Article 227). This status ... Continue Reading »
Solvency II Equivalence In The International (Re)insurance Landscape: Part III: The US and Solvency II Equivalency
Andrew Cox, Managing Director; Graham Jones, Senior Vice President; Myra E. Lobel, Managing Director; Eddy Vanbeneden, Managing Director and Steven Sumner, Oliver Wyman, Actuarial Consulting Contact Separate but related negotiations continue between the EC, European Insurance and Occupational Pensions Authority, and in the United States, the National Association of Insurance ... Continue Reading »
