As wildfire season continues in the US, fire activity is occurring in ten states, where 33 large wildfires are currently burning and have consumed 425,000 acres. During June, drought coverage expanded and intensified across much of the Great Plains and Intermountain West, and fire activity intensified as fine fuels became critically dry. This drought expansion into the core o ... Continue Reading »
Property
Planning for Natural Disasters Should Mesh with Pandemic Response
As the 2020 risk landscape continues to shift and the COVID-19 pandemic remains active heading into hurricane season, Guy Carpenter is collaborating with companies and governments to address these and other risks. During the global pandemic, many organizations may find it difficult to focus on any risks beyond COVID-19. But while the pandemic has slowed the global economy, ... Continue Reading »
Transformational Investment: Converting Global Systemic Risks into Sustainable Returns
The reinsurance market has established itself as a capable private partner for the public sector in recent years. Putting the capital and capabilities of the reinsurance sector to work to create new coverages and meet evolving demands from public sector entities is a crucial component for reducing disaster suffering. At a time when governments worldwide are forced to bear a ... Continue Reading »
Climate Change Is Now Driving Investments in Flood Resilience
As climate change and the associated increase in natural catastrophe events alters the contemporary risk landscape, there is now an opportunity for governments to partner with the (re)insurance market and put its expertise to work. After a flood event, companies need to take into account both the short-term imperatives to get up and running quickly and the longer-term need ... 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 »
2020 Western North Pacific Tropical Cyclone Predictions: Details of Findings
The Guy Carpenter Asia-Pacific Climate Impact Centre (GCACIC) at the School of Energy and Environment, City University of Hong Kong, has released its 2020 predictions for tropical cyclone formations and landfalls using a regional climate model focusing on East Asia. This model uses information from a global climate prediction model made available in March 2020. ... Continue Reading »
June 1, 2020 Reinsurance Renewal: COVID-19 Looks Set to Rank Among the Sector’s Most Expensive Events
Although considerable uncertainty remains over its ultimate cost, COVID-19 looks set to rank among the sector’s most expensive events. The pandemic has the potential to bring unknown loss impacts. It is also likely to be one of the slowest developing catastrophes that carriers have ever encountered, likely creating a prolonged period of uncertainty. ... Continue Reading »
June 1, 2020 Reinsurance Renewal: The Market Reevaluates Exposures as Conditions Tighten
Even before the COVID-19 crisis, the reinsurance market was facing an increasingly challenged operating environment. Shifting views of risk, a lack of new capital inflows, higher loss cost trends and deteriorating loss experience led to tightening market conditions at January 1, 2020 renewals. ... Continue Reading »
June 1, 2020 Reinsurance Renewal: The Impact of COVID-19 on Florida Property Catastrophe Pricing
The June 1, 2020 renewal is the first genuine test of the reinsurance market since the COVID-19 outbreak prompted government-mandated lockdowns across the globe. The pandemic has compounded an already firming reinsurance environment, resulting in challenged placements and pronounced property catastrophe pricing increases, particularly in Florida. ... Continue Reading »
Cyber Risk Outlooks for 2020 and Beyond
Much transpired in the cyber space in 2019 – record General Data Protection Regulation (GDPR) fines, the introduction of new privacy regulations, systemic ransomware claims, debate around the war exclusion and increasing concern surrounding non-affirmative cyber in the underwriting community. Looking toward the remainder of 2020, we see a number of emerging trends that present b ... Continue Reading »
