Three Major Political and Credit Risks Amid Pandemic Recovery: COVID-19’s impacts are too wide-ranging for any one sector to carry the risks alone, and some sort of mechanism with government participation needs to be put in place. As governments continue to implement fiscal and monetary policies in response to COVID-19, country-level economic risks are growing across all regions, according to Marsh Specialty’s Political Risk Map 2021.
2021 Western North Pacific Basin Tropical Cyclone Briefing: Guy Carpenter published the annual briefing on the 2021 Western North Pacific Basin Tropical Cyclone season. According to the briefing, the number of tropical cyclones forecast to form between April 1 and September 30 is above normal.
Insurance Prices Are Rising, With Cyber Claiming Big Increases: Global commercial insurance prices increased 18 percent, on average, in the first quarter of 2021, although there are signs that increases may be plateauing in some regions. The first quarter increase was lower than the 22 percent seen in the prior quarter. Pricing for cyber insurance diverged from the trend, with prices generally increasing – notably by 35 percent in the United States and 29 percent in the United Kingdom – driven by the frequency and severity of losses. The data comes from the Marsh Global Insurance Market Index.
Narrow Artificial Intelligence Is Latest Disrupter to Insurance Industry: Society is entering the age of artificial intelligence. Significant players in every industry are implementing narrow artificial intelligence (NAI) to improve their business processes. As a consequence, no element of the global insurance business model will be untouched. Most insurance product lines will need to be reengineered to reflect the new risks arising out of the adoption and deployment of NAI.
Video – UK Climate Stress Test a Sign of Increasing Scrutiny of Insurer Climate Risk: Jessica Turner, Catastrophe Advisory, EMEA, Guy Carpenter, speaks with The Insurer about the Bank of England’s climate stress test. It is a sign that central banks and international regulators are looking to “ramp up” oversight of insurer climate risk.
And, you may have missed….
Video; Peter Hearn – Navigating the Changing Nature of Risk – Opportunities and Reinsurance Support: Peter Hearn, CEO, Guy Carpenter, talks to Asia Insurance Review about the impact the changing risk landscape will have on the insurance industry – how the industry should respond to these changes – and how reinsurance can support these new opportunities. Reinsurance supports insurance carriers in many dimensions – it is a flexible capital tool, it supports growth, and it manages volatility.