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 »
capital
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 u ... Continue Reading »
COVID-19’s Impact on Ratings
In March 2020, A.M. Best began evaluating the impact of the pandemic on ratings. Actions included implementing an operations survey for all rated entities, stress testing Best’s Capital Adequacy Ratio (BCAR) levels on all rating units and modifying sector outlooks. ... Continue Reading »
U.S. Property & Casualty Rating Upgrades Outpace Downgrades During the First Half of 2020
Given the confluence of COVID-19, ongoing fire and wind catastrophe events and A.M. Best’s evolving criteria it is increasingly important to stay on top of A.M. Best’s views, particularly on topical issues. ... Continue Reading »
The Changing Nature of Risk – Casualty Dynamics: Part IV
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 »
The Changing Nature of Risk – Casualty Dynamics: Part II
The (re)insurance market is grappling with some key uncertainties that impact not only go-forward underwriting and pricing strategies, but also capital strategies for both servicing the legacy portfolio as well as growth as the market hardens, according to Christopher Ross, Managing Director, Guy Carpenter. ... Continue Reading »
How (Re)insurance Fits into the COVID-19 Landscape: Leading Up to January 2021 Reinsurance Renewals
Prior to COVID-19, the (re)insurance industry was already facing a range of challenges. The widespread impact of a global lockdown added to this challenging market and created the potential for even greater volatility. For an industry founded on the principles of diversification, we are now grappling with the implication of the first globally systemic insurance loss. ... Continue Reading »
The Changing Nature of Risk: Part V
The opportunities that lie ahead for the insurance sector are vast and complex and will require thinking about risks in terms beyond what is currently known and measurable. Intangible risk exposure is different: it is not geographically contained like a natural catastrophe and is not as explicitly calculable as a burning building. Once-in-a-lifetime innovation like this comes ... Continue Reading »
