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 »
rating agencies
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 »
Meeting the Challenges: Catastrophe Modeling
In realizing the goal of profitable growth, (re)insurers require a trusted partner to help them manage a rapidly evolving regulatory and rating agency environment. Catastrophe Modeling The insurance industry relies to a large extent on catastrophe models to manage catastrophe risk. Regulators and rating agencies recognize this fact by asking companies to justify their modeling ... Continue Reading »
Meeting the Challenges: Rating Agency Advisory
In realizing the goal of profitable growth, (re)insurers require a trusted partner to help them manage a rapidly evolving regulatory and rating agency environment. Rating Agency Advisory Ratings are a key indicator for many insurers and (re)insurance buyers. Amid evolving rating agency concerns and the complexity of enterprise risk management (ERM) requirements, Guy Carpenter ... Continue Reading »
Rating Agency Developments, Part II; Europe and Asia Pacific
Europe In anticipation of the January 2016 rollout, the European insurance industry focused squarely on Solvency II. Rating agencies refrained from instituting any new criteria. ... Continue Reading »
Rating Agency Developments
There is a great deal of overlap between the requirements of government regulators and credit rating agencies. The difference, however, is in the objectives of those requirements, with regulators focused on solvency and ability to trade, or not, and the rating agencies taking it a step further to opine on relative financial strength. Regulatory solvency approval can be viewed ... Continue Reading »
