Non-peak Perils Costs for non-peak perils in recent years have also accumulated to make a significant contribution to industry losses. Wildfires especially have come under close scrutiny after losses in California in 2017 and 2018, as well as Canada in 2016, spiraled to become significant reinsurance and retrocession events. In fact, insured losses from wildfire activity in ... Continue Reading »
capital
The Changing Nature of Risk: Part I
Today, the (re)insurance sector operates in a rapidly changing and uncertain world. Elevated levels of VUCA – volatility, uncertainty, complexity and ambiguity – are unlikely to relent any time soon. In fact, the impending degree of change over the next decade looks set to transform the risk landscape like never before, according to Rob Bentley, CEO, Global Strategic Advisory, G ... Continue Reading »
Dedicated Reinsurance Capital: First Half 2019
With the majority of 2019 reinsurance renewals now complete, the impact of significant catastrophe activity has evolved from a year ago. Capital inflow levels and risk appetites are responding accordingly. Crucially, alternative capital dipped slightly in the first half of 2019 for the first time since 2012 to USD 92 billion as investors responded to evolving risk measures and ... Continue Reading »
New products and data key to building more resilient societies, says Schauble; MMC Young Professionals’ Global Forum 2019
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 »
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 »
