The dual challenges of increasing flood risk in the United Kingdom and the impact of climate change are demanding improved planning, greater adaptability and proactive engagement across multiple stakeholders to better identify climate-related exposures and enhance resilience measures, particularly in the built environment. This is according to industry policy and building ... Continue Reading »
Models
Guy Carpenter Launches Probabilistic Indonesia Flood Model
Guy Carpenter announced the launch of its new Indonesia Flood Model. The fully probabilistic model provides countrywide coverage and enables insurers to assess their exposure to floods, the most frequently occurring natural peril in the country. ... Continue Reading »
Natural Catastrophes are Becoming More Frequent and the Intensity of Certain Perils is Estimated to Increase
Attributing a single event to climate change remains difficult at present but the long-term trend is clear: natural catastrophes are becoming more frequent and the intensity of certain perils is also estimated to increase. Guy Carpenter’s new report, Protecting our Planet and the Public Purse, highlights the expected geographic distribution of public sector risks as global ... Continue Reading »
Wildfire Risk and Underwriting Strategy
In 2018, California suffered its most costly and deadly fire season to date. The year’s costliest insured loss event was California’s Camp Fire at USD 12 billion — also the most destructive fire in the state’s history. Additionally in 2018, over 100 people perished in wildfires in Greece; British Columbia, Canada, suffered its worst wildfire season in history; in Australia, ... Continue Reading »
Methodological Considerations in the Statistical Modeling of Catastrophe Bond Prices
John Major, Director of Actuarial Research Contact John Major has authored an article that aims to help actuaries, financial analysts, statisticians, data scientists and their clients better investigate how property catastrophe risk, and particularly catastrophe bonds, are priced. As in any technical discipline, statistical modeling has its customs, templates and ... Continue Reading »
Modeling Insights
Here we review recent GC Capital Ideas posts covering insights on modeling. Terror: The Role of Technology and Analytics: Terrorism, political violence and other malicious acts differ from other insurable perils in that they are dynamic and adaptive; there is human intent driving the probability and willing the impacts to change. Historic incidents show past trends, but ... Continue Reading »
Wildfire Risk and Underwriting Strategy
In 2018, California suffered its most costly and deadly fire season to date. The year’s costliest insured loss event was California’s Camp Fire at USD 12 billion — also the most destructive fire in the state’s history. Additionally in 2018, over 100 people perished in wildfires in Greece; British Columbia, Canada, suffered its worst wildfire season in history; in Australia, ... Continue Reading »
Parametric Risk Transfer – When Does It Make Sense?
Parametric insurance provides cover for predetermined catastrophic natural events such as an earthquake exceeding a certain magnitude, a hurricane producing a certain wind speed at a location, or a flood reaching into certain areas. The insured buys a predefined amount of protection that will pay out based on predefined terms regardless of the actual loss incurred. Parametric ... Continue Reading »
Modeling Insights
Here we review recent GC Capital Ideas posts covering insights on modeling. A Risk Overview of Wildfire: Today, the frequency and severity of wildfires are garnering greater attention - not only from the media, but also from (re)insurers, catastrophe modelers, mitigation experts and other invested parties. Read the article >> Understanding Flood Risk in Malaysia ... Continue Reading »
Flood Risk Challenges in Asia
Flood is one of the most significant natural catastrophe perils, globally accounting for nearly 40 percent of all catastrophe events. In 2017, floods accounted for nearly half of the natural catastrophe events and 65 percent of natural catastrophe deaths in the world - two thirds of the deaths occurring in Asia. According to the Lloyd's City Risk Index, which examines flood ... Continue Reading »
