The reinsurance industry has seen new capital formation activity following the COVID-19 outbreak last year, and there has been favorable growth in premium and in the investment environment this year. There is now increasing clarity around COVID-19 exposures, and the industry enjoys diversification and scale benefits. Guy Carpenter and A.M. Best jointly estimate the total ... Continue Reading »
capital
Video: Peter Hearn: Navigating the Changing Nature of Risk – Opportunities and Reinsurance Support
Peter Hearn, CEO, Guy Carpenter, talks to Asia Insurance Review about the impact the changing risk landscape will have on the insurance industry – how the industry should respond to these changes – and how reinsurance can support these new opportunities. Reinsurance supports insurance carriers in many dimensions – it is a flexible capital tool, it supports growth, and it ... Continue Reading »
Guy Carpenter Launches Asia Pacific Capital Advisory Group
Guy Carpenter announced the launch of its Capital Advisory Group in Asia Pacific, with the appointments of Michael Owen and Hussain Ahmad to lead this new operation. The capital pressures that insurance companies face due to evolving market dynamics, regulatory developments and shareholders’ return expectations require sustainable, efficient and targeted solutions. The new ... Continue Reading »
Chart: Estimated Alternative Reinsurance Sector Capital
The reinsurance sector continues to demonstrate capital strength and resilience in light of the significant disrupters it encountered in 2020. New capital raises by new and existing participants contributed to the 2020 dedicated capital estimate. ... Continue Reading »
Video: Heightened Volatility and Prolonged Uncertainty To Drive Reinsurance Demand in 2021
David Priebe, Chairman, Guy Carpenter, highlights how, while the industry is facing a range of new risks in 2021, it is presented with new opportunities. ... Continue Reading »
Reinsurance Industry Capital at Year-End 2020
Overall, traditional dedicated reinsurance capital for year-end 2020 was estimated at USD 397 billion by Guy Carpenter and A.M. Best, a marginal increase on year-end 2019. Favorable valuations of asset levels and capital initiatives saw capital levels recover from the decline witnessed at mid-year 2020. However, reinsurers struggled to achieve positive returns on equity due to ... Continue Reading »
Rate Movements Moderated by Availability of Capacity as Negotiations Center on Pricing and Terms at January 1, 2021 Renewals
Price increases at the January 1, 2021 reinsurance renewals were moderated compared to initial expectations by abundant capital levels and an increased willingness on the part of reinsurers to deploy capacity in several sectors, according to Guy Carpenter. ... Continue Reading »
Video: (Re)insurance Startups – The Class of 2020
As capital continues to be drawn to the opportunity of improved pricing conditions across the (re)insurance market, the emerging class of 2020 (re)insurance startups is expected to bring both long-term and committed solutions to brokers and cedents, according to Lara Mowery, Global Head of Distribution at Guy Carpenter. ... Continue Reading »
A.M. Best COVID-19 Stress Test
In May 2020, A.M. Best announced details of its COVID-19 stress test. The assumptions for its stress test are as follows: ... Continue Reading »
It’s Time for Insurance to Catch Up to the Intangible Asset Revolution
The COVID-19 pandemic and social unrest in 2020 remind us that the insurance industry’s challenges might change on a year-to-year basis, but they will never end. COVID-19 may represent the vanguard of a series of public health crises arising out of climate change, income inequity, fraying social safety nets, demographic imbalances, resource shortages and increasingly stressed ... Continue Reading »
