Following the series of natural catastrophes clustered around the third and early fourth quarters of 2017, insurers and reinsurers provided their initial estimates of the associated incurred losses and earnings impacts. The expectation is that the initial estimates will be restated, and most likely increased, as the assessments evolve.
One of the most important market trends has been the rise in non-life insurance-linked securities (ILS) that transfer risks outside of the natural catastrophe space. Aaron Koch of Milliman provides an overview of "non-Nat-Cat" ILS market potential and offers his view on next steps.
As cyber attacks occur with increasing severity and frequency, cyber risk has emerged as a critical risk exposure. Furthermore, current and future regulation will require a reliable, evidence-based approach to risk assessment. In this article, Milliman outlines actionable steps for companies looking to assess and quantify their cyber exposure.
Captive insurers can be used to support both strategic and tactical risk management initiatives to drive superior cost of risk results. Some strategies include tangible costs, while others are intangible. Glenn Peterson of EWI Re identifies and discusses intangible issues that can become tangible, thereby adding to an organization's cost of risk.
Almost every captive insurer purchases some type of reinsurance. The issuing reinsurer and the captive insurer enter the relationship with the best of intentions. But if disagreements happen, they will be subject to the reinsurance contract's arbitration clause, and captive insurers should seek to understand arbitration clause pitfalls.