Global commercial insurance and reinsurance pricing was already on the increase prior to the COVID-19 crisis, although strong capitalization in the reinsurance market saw more moderated increases compared to those in the primary market. Ultimately, the fundamentals of (re)insurance remain strong. There will nevertheless be winners and losers as the market adjusts to the ... Continue Reading »
insurance
Global Insurance Market Index – First Quarter 2020
While June 1 reinsurance renewals were challenging, capacity ultimately came together to meet cedents’ needs and the market continued to function well. Similar outcomes are expected at July 1, and looking further ahead to January 1, 2021. The reinsurance sector has shown itself to be well versed at navigating market-changing events, and the overriding message following June 1 r ... Continue Reading »
Key Investment Ideas For Insurers For 2020 and Beyond
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 »
Payer-Provider Partnership Trends and Turning Points
As the COVID-19 situation is changing on a daily basis, the impact to the insurance and reinsurance markets is not yet fully known. However, given the significance of the developments, Guy Carpenter provides our view of how COVID-19 may impact the medical (re)insurance market. Payer-provider partnership launches have leveled off over the past of couple years, with an ongoing ... Continue Reading »
How Ransomware Threats and Regulatory Pressures are Driving Cyber (Re)insurance Sales
What is motivating cyber (re)insurance sales? Guy Carpenter's Cyber Year in Brief and 2020 Outlook explores how the threat of ransomware and associated high costs of regulatory actions have driven clients to purchase cyber insurance cover for the first time, or to reassess the adequacy of currently purchased limits. ... 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 »
The Potential New Normal in Insurance Products
As Guy Carpenter helps clients, the societal, operational and human costs associated with COVID-19 are primary in our thoughts, discussions and efforts. While these costs are undoubtedly high, health insurers and reinsurers are also closely monitoring the direct and indirect financial impact of the virus. The growing use of telemedicine and capacity constraints within our ... 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 »
Pandemic Risk Protection: Accelerate Recovery and Build Resilience Now Through Public-Private Partnership
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 »
Risk Appetite: Altering Philosophies in Uncertain Times
The global economy finds itself in a state of uncertainty in the face of the novel coronavirus (COVID-19), with S&P Global now forecasting a global recession this year, according to a briefing from Guy Carpenter-affiliate Marsh. (1) ... Continue Reading »
