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 »
Guy Carpenter
How Overlooking Climate Change Could Become a Personal Liability
Reinsurers are well-placed to advise clients on responding to climate change risk. As climate change and the associated increase in natural catastrophe events alters the contemporary risk landscape, there is now an opportunity for companies to partner with the (re)insurance market and put its expertise to work. Climate change is complicating two of the most important board ... Continue Reading »
2020 Marsh & McLennan Climate Resilience Handbook
Climate change risk is, by its very nature, massively disruptive, and nations are responsible for an increasing share of the costs as communities and businesses rely more and more on state natural disaster relief. Put simply, insurance penetration is falling behind rising loss trends, and the situation is only going to deteriorate going forward, especially as climate change ... Continue Reading »
Guy Carpenter Announces Senior Appointment to Further Strengthen Property Catastrophe Value Proposition
Guy Carpenter today announced the appointment of Paul Miller to lead Guy Carpenter’s Property Catastrophe value proposition for UK, Global Specialties and key global clients, effective September 2021. ... Continue Reading »
The 2020 Captive Landscape Report: Captives Offer Value in Uncertain Times
Medical systems have historically been the quickest to adopt captives to control their employee healthcare costs. From regional hospitals with a single plan, to large hospital systems with multiple plans, the systems have found that a captive-based structure used at the parent level enables a more efficient purchase with uniform protection across plans. Instead of numerous ... 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 »
Post-Pandemic, Human Interactions Still Power Global Business
While the new disruptive InsurTech companies were initially written off by carriers, citing woefully unprofitable combined ratios, they are trending positively and could soon see underwriting profits. COVID-19 is pushing companies to lean increasingly on technology, and incumbents are utilizing advanced data, analytics and technology capabilities in software and ... Continue Reading »
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 »
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 »
