Young adults (ages 15–24) around the world are experiencing their second major global crisis within a decade: (1) they entered youth in the throes of the financial crisis, (2) and are now exiting at the outset of a pandemic not seen in generations. They will face serious challenges to their education, economic prospects and mental health. The outlook for this generation had ... Continue Reading »
macroeconomic
2021 Global Risks Report: A Focus on Climate Change
As climate change, the increase in natural catastrophe events and the COVID-19 pandemic alter the contemporary risk landscape, there is now an opportunity for governments to partner with the (re)insurance industry and put its expertise to work. ... Continue Reading »
It’s Time for Insurance to Catch Up to the Intangible Asset Revolution
The COVID-19 pandemic and social unrest in 2020 remind us that the insurance industry’s challenges might change on a year-to-year basis, but they will never end. COVID-19 may represent the vanguard of a series of public health crises arising out of climate change, income inequity, fraying social safety nets, demographic imbalances, resource shortages and increasingly stressed u ... Continue Reading »
Equity Market Response to COVID-19: Leading Up to January 2021 Reinsurance Renewals
For the first time since 1918, the world has had to deal with a truly global pandemic. In rapid succession, governments around the world simultaneously imposed quarantines, travel restrictions, business closures and a variety of other measures in an attempt to mitigate the spread of a virus. ... Continue Reading »
The Great Coronavirus Restructuring
The (re)insurance sector is well-versed at navigating market-changing events, and while the impact of previous shock events such as Hurricane Andrew, the terrorist attacks of September 11, 2001, and Hurricane Katrina may have resulted in a loss of capital and reduced capacity in the short-term, the market responded to each occasion by innovating, working with governments and ... Continue Reading »
Clarity Over Coverage is Critical as COVID-19 Casts a Shadow over January Renewals
Reinsurance renewal negotiations are delicately poised, with increasing pressure on rates, economic uncertainty and disputes over COVID-19 wordings putting long-standing relationships to the test, according to a recent article in Insurance Day from Massimo Reina, CEO for Continental Europe at Guy Carpenter. ... Continue Reading »
The Changing Nature of Risk: Part II
The (re)insurance industry entered 2020 with a strong balance sheet, pricing tailwinds and abundant capital. The impact of COVID-19 was sudden and violent and even though the equity markets have recovered from the depth of the crisis, the Standard & Poor’s (S&P) property & casualty (P&C) index (down 13 percent year-to-date) still lags the broader S&P 500 (up ... Continue Reading »
The Changing Nature of Risk: Part I
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 »
Risk-Based Capital Stress Testing in Today’s Environment
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 »
How to Spot When Employees Are Struggling, and How to Plan for a Healthier Workforce
The transition to working from home has gone incredibly smoothly overall, enabling seamless communication between brokers, cedents and reinsurers. Technological advancement has facilitated this transition but human behaviors are equally important in ensuring colleagues continue to feel “connected” to their co-workers, clients and the overall market. Communication on an ongoing b ... Continue Reading »