Typhoon Talas could cost insurers as much as $600 million as officials search for victims of the weekend storm that slammed into western Japan and claimed more than 50 lives.
The total risk capital of insurance-linked securities dropped by $223 million despite the second highest two-quarter issuance of catastrophe bonds in the history of the market, says Guy Carpenter Securities.
While Florida insurers have long used catastrophe models to assess portfolio-level catastrophe risk, leading carriers assess catastrophe risk before the policy is underwritten. Incorporating catastrophe modeling into the underwriting process is easier than most assume.
Since differences in catastrophe-model estimates essentially result from differences in frequency and severity assumptions, modeling pioneer Karen Clark proposes that rating agencies use “benchmark” 100-year catastrophes to gauge cat risks for rated companies, rather than PMLs that can vary widely depending on the modeler and the version of the model...
The absence of a major catastrophic event in Florida in recent years has not erased memories of the 2004 and 2005 hurricane seasons and the impact of the ensuing hard property insurance market.
Are insurance carriers putting too much weight on the results of catastrophe models in underwriting risks and managing their concentration of exposures?
AIR Worldwide Corporation has announced it is supporting the new ACORD binding authority exposure data standard (ER3001) in its catastrophe modeling software.
AIFAM Inc., an investment firm specializing in alternative assets and strategies, has chosen AIR Worldwide Corp.'s CATRADER, the industry standard application for analyzing catastrophe reinsurance and insurance-linked securities (ILS).
Risk Management Solutions (RMS), a provider of products and services for catastrophe risk management, unveiled its new RMS RiskAnalytics operation, a team of analysts to perform catastrophe modeling
Insurers have become too dependent on catastrophe models when deciding which risks should be cancelled and which ones are acceptable, Karen Clark, founder of the first cat modeling firm, warned.