As companies continue to navigate the repercussions of the COVID-19 pandemic, it is important that they understand the pandemic’s impact on risk-based capital (RBC). Insurers are dealing with COVID-19’s effects on assets and liabilities, both of which can affect capital levels, according to Robert Lumia, Senior Vice President, and David Domino, President, U.S. Segments, Guy Car ... Continue Reading »
capital
Risk-Based Capital Stress Testing: Part V
As the world continues to wrestle with the COVID-19 outbreak, medical, economic and societal measures designed to limit the spread of COVID-19 have seen mixed results. Infection and fatality rates are no longer growing quite as fast as they were during March and April; however, many states are still grappling with increasing infection rates. ... Continue Reading »
The Changing Nature of Risk
There is an old adage that “adversity builds character.” However, before adversity builds character, it reveals character, and the numerous catastrophes that have occurred over the last several years combined with the ongoing pandemic have clearly revealed the character of the insurance industry. ... Continue Reading »
Standard & Poor’s Outlook on COVID-19: Overview
GC Capital Ideas recently featured a four-part article on Standard & Poor's (S&P) assessment of COVID-19's impact across the insurance and reinsurance markets. The series discusses the pandemic's effect on U.S. property & casualty (P&C) insurance, U.S. life insurance, global reinsurance and stress test modeling. Global Reinsurance Sector S&P recently ... Continue Reading »
Risk-Based Capital Stress Testing: Part IV
Guy Carpenter has developed a model that mirrors aspects of how rating agencies perform stress tests on accident and health company financials. The test looks at the effects COVID-19 has on the marketplace and provides benchmark comparisons of company capital levels by estimating changes to company-level RBC ratios based on stresses to both assets and liabilities. ... Continue Reading »
Governments Need Private Capital for Economic Recovery and Future Disaster Protection
It is a government’s responsibility to prepare for risks that may threaten national security and social stability, and as government entities take steps to understand and manage those risks, they are turning to the reinsurance market to find ways to improve their financial resilience. The risk landscape for public sector entities is changing faster than ever before, with e ... Continue Reading »
Risk-Based Capital Stress Testing: Part III
As companies continue to navigate the repercussions of COVID-19, it is important that they understand the pandemic’s impact on risk-based capital (RBC). ... Continue Reading »
Mid-Year 2020 Reinsurance Renewal: Overview
GC Capital Ideas recently featured three posts covering some of Guy Carpenter's observations on the mid-year 2020 reinsurance renewals. ... Continue Reading »
September 2020 Dedicated Reinsurance Capital Update
Guy Carpenter and A.M. Best have re-issued our joint dedicated reinsurance capital estimate for September 2020 of USD 471 billion, down 2.4 percent since year-end 2019. The recent update and change is the result of additional analysis and mid-year reporting from our initial June forecast. ... Continue Reading »
Risk-Based Capital Stress Testing: Part II
The Impact for Life & Health Insurance Companies COVID-19 is likely having an impact on insurance company capital. Companies are closely monitoring potential decreases in assets as well as liability changes in an effort to protect their capital and surplus positions. Rating agencies are also monitoring these developments to try to identify companies whose financial ... Continue Reading »
