In times of economic distress, (re)insurance is typically considered by investors to be a defensive sector. This is not to say the sector will be unaffected by the COVID-19 crisis. Access to capital has reduced while carriers’ assets have clearly been hit by lower interest rates, wider credit spreads and an equity crash. A fall back into recession will also hinder growth o ... Continue Reading »
capital
Loss Reserve Protection Covers: Solutions for Achieving Capital Optimization
The COVID-19 pandemic clearly presents significant challenges to insurers, but it is also becoming increasingly clear that (re)insurers are likely entering a far more favorable underwriting environment. After years of relative stability brought about by strong capitalization, the landscape for the sector has undeniably changed, with pressure on the asset side of balance sheets ... Continue Reading »
Transformational Investment: Converting Global Systemic Risks into Sustainable Returns
The reinsurance market has established itself as a capable private partner for the public sector in recent years. Putting the capital and capabilities of the reinsurance sector to work to create new coverages and meet evolving demands from public sector entities is a crucial component for reducing disaster suffering. At a time when governments worldwide are forced to bear a ... Continue Reading »
How America’s Insurance System Can Prepare For a Future Pandemic
The insurance industry, policyholders and governments throughout the world must come together on an approach that offers relief to those who need it now and develop a plan to implement mitigation strategies and a response mechanism for future pandemic events. The scale of this exposure is immense and far beyond the financial capabilities of the insurance industry alone. A ... Continue Reading »
June 1, 2020 Reinsurance Renewal: COVID-19 Looks Set to Rank Among the Sector’s Most Expensive Events
Although considerable uncertainty remains over its ultimate cost, COVID-19 looks set to rank among the sector’s most expensive events. The pandemic has the potential to bring unknown loss impacts. It is also likely to be one of the slowest developing catastrophes that carriers have ever encountered, likely creating a prolonged period of uncertainty. ... Continue Reading »
June 1, 2020 Reinsurance Renewal: The Market Reevaluates Exposures as Conditions Tighten
Even before the COVID-19 crisis, the reinsurance market was facing an increasingly challenged operating environment. Shifting views of risk, a lack of new capital inflows, higher loss cost trends and deteriorating loss experience led to tightening market conditions at January 1, 2020 renewals. ... Continue Reading »
Loss Reserve Protection Covers: Amid an Unprecedented Confluence of Headwinds, Solutions for Achieving Capital Optimization
The COVID-19 pandemic clearly presents significant challenges to insurers, but it is also becoming increasingly clear that (re)insurers are likely entering a far more favorable underwriting environment. After years of relative stability brought about by strong capitalization, the landscape for the sector has undeniably changed, with pressure on the asset side of balance sheets ... Continue Reading »
Four Scenarios for the Post-Coronavirus Economy Through the Lens of Post-War Recovery
Economists have been scrambling to model how the recession might unfold. Will the recovery be V-shaped or U-shaped, or will it take more of an L-shape? ... Continue Reading »
Financial Market Resilience: Three Waves of Action for Market Infrastructure Firms in the Aftermath of COVID-19
COVID-19 will play a crucial role in defining how financial market infrastructure evolves over the next decade. In a new report, Guy Carpenter-affiliate Oliver Wyman outlines three waves of management action to help navigate the challenges ahead. The report was written by Oliver Wyman Partners Hiten Patel, Daniela Peterhoff, Michael Wagner and Tobias Wuergler and Principal ... Continue Reading »
The Impact of COVID-19 on Alternative Assets
The rapidly evolving COVID-19 crisis is continuing to create severe political, social, and economic uncertainty that is translating into significant public market volatility worldwide. While the impact on alternative assets is less observable to-date, it is likely to be as significant as that for public markets. ... Continue Reading »
