GC Capital Ideas Top Stories: March 2021 – GC Capital Ideas

1. Reinsurance Implications of the United Kingdom’s Business Interruption Test Case: On January 15, 2021, the UK Supreme Court issued its widely anticipated decision in the Financial Conduct Authority’s business interruption (BI) test case. The FCA brought the test case to resolve uncertainty for certain BI policyholders affected by the COVID pandemic. Although the Court ruled that some forms of BI insurance cover COVID losses, the Court adopted a narrow definition of a COVID “occurrence” — an illness suffered by just one person or arguably several people in one household — that has raised questions about the meaning of the word “occurrence” in other contexts.

Read the briefing >>

2. Chart: Top 10 Largest Insured Losses Versus Projections for COVID-19: Company-reported COVID-19 losses are near USD 30 billion. When added to 2020 large losses, total loss is approximately USD 110 billion. Using the mid-point of public COVID-19 loss estimates, a number in excess of USD 140 billion is generated.

View the chart >>

3. Chart: Estimated Alternative Reinsurance Sector Capital: The reinsurance sector continues to demonstrate capital strength and resilience in light of the significant disrupters it encountered in 2020. New capital raises by new and existing participants contributed to the 2020 dedicated capital estimate.

View the chart >>

4. Chart: Significant Insured Catastrophe Losses 2011 – 2020: Based on Guy Carpenter tracking, large losses generated near USD 80 billion of loss in 2020, an above-average number without considering COVID-19.

View the chart >>

5. (Re)insurance Leaders Weigh In: The Next Forty Years: Peter Hearn, CEO of Guy Carpenter, spoke with Reactions, reflecting on the last 40 years and providing his perspective on what the next 40 will look like for the industry.

Read the article >>

6. CAT-i Bulletin: February 2021 U.S. Arctic Air Outbreak: An intrusion of Arctic air into the central and eastern United States has brought periods of record-setting cold to areas as far south as the Southern Plains. Along the boundary between cold and warm air, several impactful winter storms have crossed from the Southern Plains into the Mid-Atlantic over the recent two weeks.

Read the article >>

7. A Roadmap to Implementation of a Community-Based Catastrophe Insurance Program: Once community officials, staff, or residents are interested in further considering community-based catastrophe insurance (CBCI), there is an iterative five-part process that can guide them as they consider possible implementation. These are not necessarily sequential steps – it may be necessary to go back and forth among them multiple times. Before arriving at the decision to pursue these steps, the community may need a local champion or leader who believes CBCI could secure local benefits.

Read the article >>

8. Reinsurance Resilience: Private Market Capital: While concerns regarding the selective appetite of private markets for backing catastrophic risk have unfolded in areas with large losses in recent years, the reinsurance market has become well-versed at overcoming major losses and has navigated a number of capital challenges following major disasters, such as the September 11 attacks, Hurricane Katrina, and the succession of catastrophic loss events in 2017 (Hurricanes Harvey, Irma and Maria).

Read the report >>

9.AI Could Be As Harmful As It Is Helpful — Depending on How You Use It: Artificial intelligence (AI) has embedded itself into the business landscape. No longer the purview of Big Tech companies alone, firms across various industries are actively integrating AI into their processes, acquiring tech startups and scouting opportunities to deploy the technology in the near future. COVID-19 has only accelerated this trend as businesses have had to contend with plummeting revenue and workforce restrictions, according to Ben Hoster, Director of Transformative Technologies, Marsh McLennan Advantage and Richard Smith-Bingham, Executive Director of Insights, Marsh McLennan Advantage.

Read the article >>

10. Cyber Risk: The Emerging Cyber Threat to Industrial Control Systems: Lloyd’s, in partnership with Guy Carpenter and cyber analytics specialist CyberCube, has launched a new report, The Emerging Cyber Threat to Industrial Control Systems, which provides an original analysis of potential cyber-attack pathways to an industrial target.

Read the report >>

Click here to register to receive e-mail updates >>

Source Link