It takes time to clarify the hazard measurements at locations with instruments. Hurricane Michael hit Florida on October 10, 2018 as a Category 4 event. Six months later, on April 19, 2019, the National Hurricane Center upgraded Michael to Category 5 because reanalysis showed that its landfall wind speed was 160 MPH instead of 155 MPH. ... Continue Reading »
Catastrophe
Do Real-Time Event Loss Estimates Inform Model Fitness? Part II: Shortcomings of Real-Time Event Responses
While catastrophe model vendors’ focus is to build deterministic and probabilistic models, they have also provided inputs for real-time event loss estimates for many years. Model vendors usually release their loss estimate tools within one or two weeks of an event’s occurrence. At that time, the hazard parameters are sparse, unverified and conflicting over multiple sources, acc ... Continue Reading »
Looking Beyond the Clouds: A Cyber Insurance Industry Catastrophe Loss Study – GC@MC Commentary
Because it is essential to develop a deep understanding of the characteristics of cyber catastrophe events and the financial impact they could have on the standalone cyber insurance market as it exists today, CyberCube Analytics (1) and Guy Carpenter have collaborated to help (re)insurers quantify cyber risk by pooling data resources and analytics capabilities to cultivate a ... Continue Reading »
The Changing Nature of Risk – GC@MC Commentary
In a report published this month by Guy Carpenter, we analyze how an accumulation of losses from recent extreme weather events, the specter of climate change and higher loss cost trends in a number of long-tail business lines are forcing carriers to reassess views of risk. Capital inflow levels and risk appetites are responding accordingly, according to Robert Bentley, CEO, ... Continue Reading »
Market Conditions Shift as (Re)insurers Adjust to the Changing Nature of Risk
The growing complexity of risk is manifesting itself in the (re)insurance sector as underwriting assumptions are being challenged, and capital inflow levels and risk appetites respond accordingly. Crucially, the accumulation of losses from a range of diverse natural catastrophe perils in 2017 and 2018 has brought an end to years of soft (re)insurance market conditions as ... Continue Reading »
Weather Sentinel: Dorian Intensifies towards the Carolinas
Dorian regained major category 3 strength overnight as it tracks perilously close, if not over, the coast of the Carolinas this evening. If Dorian retains this strength to the coast, it will be the first category 3 hurricane to make landfall in the Carolinas since Fran in 1996. Peak perils of risk that carry high certainty include dangerous storm surge, heavy rainfall i ... Continue Reading »
Guy Carpenter and CyberCube Report Reveals Potential Impact of Cyber Catastrophe Scenarios on U.S. Cyber Insurance Industry
Guy Carpenter and CyberCube Analytics released the findings of a joint report that explores the size and shape of potential cyber catastrophes and the resulting financial impact on the U.S. cyber insurance market. The report, “Looking Beyond the Clouds: A U.S. Cyber Insurance Industry Catastrophe Loss Study,” examined some of the key drivers of cyber catastrophe scenarios and ... Continue Reading »
Weather Sentinel: Hurricane Dorian – Category 5 – Landfall in Bahamas, Impacts to US Still Uncertain
Hurricane Dorian strengthened to a category-5 hurricane overnight and is moving over Abaco Island on a slow path west toward the United States. The Northern Bahamas Islands are experiencing a storm surge of 15 to 20 feet above tide level in areas of onshore winds, coupled with destructive waves, rainfall in excess of 20 inches, and hurricane force winds. Much uncertainty ... Continue Reading »
Chart: Significant Insured Losses – 2011 to Q2 2019
Chart exhibits the significant insured losses from 2011 through the second quarter of this year. First-half 2019 losses are at levels below those experienced in first-half 2017 and 2018. ... Continue Reading »
Closing The Gap: Insurance Penetration and Public Sector Risk Financing in Asia Pacific
In recent years, the issue of low penetration in catastrophe insurance across the growing economies of Asia Pacific, and the critical protection gap between economic losses caused by natural disaster events and insurance-covered losses are receiving the attention they merit. The insurance industry can play a significant role in narrowing the gap to help ensure sustainable ... Continue Reading »
