All GLG News Analyses Filed Under: Insurance & Risk Management
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
-
Munich Re - Re-insurance with built in stablizers
May 13, 2008
Munich Re Net Income Drops 20% | www.propertyandcasualtyinsurancenews.com
Most of Munich Re's securities investments are in European investment grade and government bonds. As inflation increases, re-invested funds will earn a higher rate of return. Their investments in equities, private equity and more complex fixed income securities are managed by a professional captive asset management entity, which also manages third party funds. Thus, these funds are is safe hands.
-
Agents Must Involve Their Insureds In The Policies Written For Them
May 13, 2008
Hurricane and Windstorm Deductibles | www.iii.org
An Educated And Fiscally Involved Insured Is Good Business For Everyone
-
The "Credit Crisis" will continue to Reverberate: AIG and Similar Insitutions Record Losses!
May 12, 2008
AIG Posts $7.8B Loss For 1Q | www.propertyandcasualtyinsurancenews.com
Implications: 1.Many Regional Financial Institutions have reported similar losses and a Plan for Re-Capitalization. 2. Poor results causation: A. Stock Market Volatility, B.The Credit Crisis and, C. Weakness in the Housing Market. 3.The ESTIMATES , so state, that the sub-prime matter is 75 % to 85 % resolved. In essence, the adverserial affect in the Financial Markets should subside. 4.Most Financial Institutions failed to adjust to the potential of the severity of UNREALIZED valuation losses and a Decline in the Value of their Investment Portfolio. An error in Foresight? 5.The Shares of the Insitution are , now, trading at a point just above a ten (10) year low point. 6.The overall affect on the Financial Marketplace is a fall-out of about 40 % in price per share . At a point in time , the concept of Unrealized losses/gains will become Realized - the basis of accounting criteria.
-
Insurance Scoring is a Compliance Nightmare: 50 States, 50 Sets of Rules
May 7, 2008
Credit Scoring | www.iii.org
In the absence of a sweeping change in federal legislation, insurance underwriting today is regulated by the states. This means that when the Mississippi or Texas or Alaska state legislature passes a new bill governing the use of credit scores in insurance underwriting, all involved parties must change their algorithms in order to comply. Since generic credit scoring itself is regulated primarily at the federal level, it becomes an absolute nightmare for the Credit Reporting Agencies to comply with each state's unique requirements for insurance, and the state deadlines for compliance are often unrealistic considering the amount of development and testing that go into development of a new scorecard.
-
Smart Homeowners Insurers Use More Than Cat Models
April 29, 2008
Insurers Overly Focused On Cat Models, Says Expert | www.propertyandcasualtyinsurancenews.com
A recent news story quotes the insurance modeling pioneer Karen Clark as saying, with keen insight, that insurers rely too much on catastrophe models. This analysis provides background on cat models and how homeowners insurers use them. The analysis also offers suggestions for evaluating a property insurer's skill at applying modeled results in conjunction with other information.
-
What the fall in Wellpoint's Profitability means to the industry
April 29, 2008
WellPoint Net Slides 25% | online.wsj.com
This article clearly shows to me that insurers will price business to sell when it makes no sense which results in them telling Wall Street they underpriced the business. We see them so crazy competitive on cases that nobody else even wants just to bring their total membership up to please Wall Street as they are focused on the outcome of a quarter and not the year...shortsighted. The largest insurer is way off on their profitability projections.
-
Are you Talking to the Wrong Underwriter?
April 29, 2008
Insurers Overly Focused On Cat Models, Says Expert | www.propertyandcasualtyinsurancenews.com
Insurers' actuarial studies include consideration for catastrophes(cats) in their recommendation of rates and underwriting but they are not the sole factor. The underwriter is the ultimate decision maker. What happened is that insurers took too much risk in hurricane areas. They finally woke up and saw what they had lost. Reinsurance has much to do with the risk that is accepted by primary insurers. Because many coastal properties are laid off to reinsurance, the reinsurers complained when losses started to come in and asked the primary companies to cut back
-
Credit Scoring Should Not Be Used In Determining The Price For Insurance Except For Bonding.
April 28, 2008
Credit Scoring | www.iii.org
Credit scoring further injures those applicants who have had very difficult changes in their lives- mostly by no fault of their own.
-
Joseph DelaneyManaging PartnerHilb Rogal and Hobbs of Metropolitan Washington, Inc.
April 22, 2008
Insurers Overly Focused On Cat Models, Says Expert | www.propertyandcasualtyinsurancenews.com
Primary insurers and reinsurers will demand that catastrophic modeling be used in order to justify their underwriting decisions of this type of insurance. These newer models in conjunction with in-house capacity aggregation tools (Insurers now know where and how much of their capacity is in play) will guide their underwriting decisions from windstorm and earthquake to workers compensation in terrorism prone cities like DC and NYC. The process is another way to spread the risk, so that any one insurer does not take a huge hit from any one event. Using technology to spread risk will utimately decrease volatility in insurance markets.
-
Florida's Soft Market May End Due To Legislative, Not Natural Distasters.
April 21, 2008
Senate passes homeowner's insurance bill tougher on companies | www.sun-sentinel.com
Let The Industry Stabilize And Grow By It's Own Dynamics Instead Of Another House Bill.
- Subscribe to Updates
-
Leading institutions connect with members of the Financial & Business Services councils through GLG
Get Intelligently Connected
with the world's leading experts
GLG's 850+ Clients Include:
- More than 70% of the world's leading
- mutual funds
- 15 of the leading 20
- global banks
- 7 of the leading 10
- global private equity firms
- 5 of the leading 10
- AmLaw firms
- Fortune 500® Companies
- in nearly every industry sector, including pharmaceuticals, insurance, chemicals, energy and computer software
Most Popular Insurance & Risk Management News
-
Battle for Dominance in Mortgage Fraud Analytics Space
October 17, 2009
-
A Second Article on Federal Chartering
October 13, 2009
-
Is an Optional Federal Charter for Insurance Companies in the Offing?
October 12, 2009
-
Where was my Risk Management at the time of the crime?
September 26, 2009
-
P&C Reinsurance Rates for the Renewals 2010
September 13, 2009