The Impact for Life & Health Insurance Companies COVID-19 is likely having an impact on insurance company capital. Companies are closely monitoring potential decreases in assets as well as liability changes in an effort to protect their capital and surplus positions. Rating agencies are also monitoring these developments to try to identify companies whose financial ... Continue Reading »
rating agencies
Risk-Based Capital Stress Testing: Part I
As companies continue to navigate the repercussions of COVID-19, 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. ... Continue Reading »
Standard & Poor’s Outlook on COVID-19 Part Four: Stress Testing
Standard & Poor's (S&P) continues to refresh its asset stress test, which reflects real-time insights on rating migration and default risk. The reinsurance, property & casualty (P&C) and life teams all conducted asset stress tests as the markets were starting to show dislocation in late February, as well as in mid-March, when the equity market was close to its ... Continue Reading »
Standard & Poor’s Outlook on COVID-19 Part Three: U.S. Life Insurance Sector Outlook Remains Stable
S&P maintains a stable outlook for the U.S. life insurance sector, and assigned a stable outlook to over 90 percent of life insurers. The rating agency views asset risk as the most significant and immediate concern for the sector, over other factors relating to equity market volatility, near-zero interest rates and increased mortality risk. ... Continue Reading »
Standard & Poor’s Outlook on COVID-19 Part Two: U.S. Property & Casualty Insurance Sector Outlook
As the COVID-19 pandemic continues and its impacts across insurance and reinsurance markets become increasingly clear, Standard & Poor's (S&P) is maintaining its stable outlook for the U.S. property & casualty (P&C) insurance market and it assigned a stable outlook to 95 percent of P&C insurers. Thus far, the only ratings action S&P has taken is to ... Continue Reading »
Standard & Poor’s Outlook on COVID-19 Part One: Global Reinsurance Sector
Standard & Poor's (S&P) recently changed its outlook for the global reinsurance sector to negative from stable, as it anticipates a number of negative rating actions and increasingly difficult business conditions for the sector over the next 12 months, according to a recent article from Guy Carpenter. S&P assigned a stable outlook to over 80 percent of global ... 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 »
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 »
