As climate change rises up the agenda, there are huge opportunities to help companies manage risk in the burgeoning weather protection market, said Barney Schauble, Managing Principal, Nephila Advisors. Speaking at the MMC Rising Professionals' Global Forum, he said: "It feels like the early days of the catastrophe ILS market." ... Continue Reading »
capital
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 »
Reinsurance Rate Movement Limited at January 1 Despite Uncertainty over Pricing Adequacy and Available Capital
The overall impact of catastrophe losses on property rates was muted at the January 1, 2019 reinsurance renewals, but the fourth highest annual catastrophe loss year on record did create questions over pricing adequacy, underwriting strategy and the amount of capital available, says Guy Carpenter. ... Continue Reading »
Balance Sheet Expansion: Opportunities and Challenges
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 »
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 »
A Math Formula May Offer a Solution to Insurers’ Critical Challenges
Guy Carpenter has developed a methodology that applies a mathematical formula to provide insurers and reinsurers with a unified, practical framework for risk pricing and capital allocation. ... Continue Reading »
The Transformation of Australian and New Zealand life insurance – GC@SIRC Commentary
Matthew Rose, Managing Director Contact Foreign companies are seeking the long-term growth opportunities that the Australian market offers Insurers are gaining understanding of the significance of efficient and dynamic restructuring of their capital Regular discussions ensure that covers are properly structured to reflect current risk/capital needs ... Continue Reading »
Closing the Gap: Insurance Penetration and Public Sector Risk Financing in Asia Pacific – GC@SIRC Commentary
Michael Schwarz, Head of Public Sector, Asia Pacific Contact Our industry should be a critical contributor to increasing community resilience against volatility and shocks to their environments Public-private risk-transfer partnerships offer a huge opportunity for the insurance industry to grow. However, one size does not fit all. In addition to technical ... Continue Reading »
Life: Emerging Competition and the Need to Remake the Reinsurance Relationship – GC@PCI Commentary
David Rains, Managing Director Contact Life reinsurance value prop a combination of risk capital, differentiated underwriting knowledge and value-added services Availability of capital and insurers’ success in closing knowledge gap in underwriting reduce need to purchase risk protection Reinsurers can position their InsurTech and advanced technologies to make a ... Continue Reading »
As Insurance Market Cycle Evolves, Carriers Must Review Underwriting Strategies
Guy Carpenter has completed its annual review of property & casualty (P&C) results and found that insurers’ operating environment today is very different than just a few short years ago. Formerly stable lines produced significant volatility in 2017, while others that often struggle to produce underwriting returns enjoyed multi-decade highs in profitability. And the f ... Continue Reading »
