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 »
rating agencies
Facultative or Treaty and Why the Need for Hybrid Solutions: Part II
Jeff Fleming, Managing Director Contact Turning to the other form of reinsurance, treaty is considered generally to be the "go-to" coverage solution for portfolios of risk. Challenges associated with treaty reinsurance may include: Minimum and deposit premiums Unnecessary coverage Limited sideways coverage (reinstatements and occurrence caps). "As a result ... Continue Reading »
Facultative or Treaty and Why the Need for Hybrid Solutions: Part I
Jeff Fleming, Managing Director Contact Insurers face challenges in managing underwriting, capital protection, risk and risk profiling as they navigate underwriting guidelines based on their gross and net risk underwriting appetite. Against these challenges, companies utilize various forms of reinsurance, traditionally facultative or treaty, to buy risk protection, shore ... Continue Reading »
Facultative or Treaty and Why the Need for Hybrid Solutions – GC@PCI Commentary
Jeff Fleming, Managing Director Contact Facultative and treaty reinsurance offer a host of benefits, but each can be burdened with inflexibilities that limits the utility A reinsurance solution that draws on fac and treaty enables insurers to purchase cover that meets unique needs of their profiles GC Hybrid Solutions(SM), with fixed pricing and set capacity, frees ... Continue Reading »
TRIPRA: The Need to Ease Rating Agencies and Regulators’ Concerns
In 2018, the minimum industry trigger for the Terrorism Risk Insurance Program Reauthorization Act of 2015 (TRIPRA) increased to USD 160 million, contributing to continued rating agency concerns. In late 2017, A.M. Best updated its terrorism methodology and fully integrated the peril into its stochastic Best’s Capital Adequacy Ratio (BCAR) Model. ... Continue Reading »
Chart: What is the Biggest Threat to (Re)insurers’ Plans for Growth?
Chart highlights the result of a survey taken of 107 insurance and reinsurance professionals conducted by Guy Carpenter at the 2016 annual meeting of the Property Casualty Insurers Association of America when asked what they see as the biggest threat to their plans for growth. ... Continue Reading »
A.M. Best’s More Transparent Ratings Criteria Provide Benefits to Insurers That Proactively “Own Their Ratings”
Eric Simpson, Managing Director Contact Maintaining or improving ratings is a priority for most insurers. This can be challenging amid increasing demands for companies to "own their risk" (Own Risk and Solvency Assessment "ORSA") in an environment of evolving rating agency requirements, including A.M. Best's (Best) proposed ratings methodology and Stochastic-based Best's ... Continue Reading »
(Re)Insurers Modifying Their Behavior Ahead Of A.M. Best’s New Ratings And BCAR Criteria – GC@MC Commentary
Eric Simpson, Managing Director and Mark Murray, Senior Vice President Contact Industry Accelerates Risk Profile Analytics and Development of Their Own Risk Tolerances and Stochastic Capital Modeling The launch of A.M. Best's (Best) new ratings and Stochastic-based Best's Capital Adequacy Ratio (BCAR) draft criteria became an inflection point for (re)insurers worldwide. The ... Continue Reading »
The Challenge Of Cyber Exposure
Here we review GC Capital Ideas posts on the challenge the peril of cyber risk poses for (re)insurers and rating agencies and how the management of this risk is evolving. ... Continue Reading »
Changes to Best’s Capital Adequacy Ratio (BCAR)
Here we review recent GC Capital Ideas posts on developing changes to Best's Capital Adequacy Ratio (BCAR) and the potential impact of those changes on (re)insurers. ... Continue Reading »
