JLT Re Risk Perspective Magazine

17 September 2018

JLT Re has published the latest edition of its magazine Risk Perspective. The current edition contains regional updates, news and JLT Re experts' perspectives on pandemics, reinsurance hub Bermuda and economic capital models (ECM).

This issue also contains four topical articles:

Striking a balance: The available capacity in the credit and political risk market has increased greatly in the last ten years. The number of active insurers has also doubled to around 60 today. This article explains the reasons for the growth of the credit and political risk market. It also talks about how competition is fuelling innovation in the market.

Is there enough in reserve: According to an annual analysis of industry reserves by investment bank Morgan Stanley, year-on-year deterioration left property and casualty industry reserves deficient by USD 4.3 billion in 2017, and the deficiencies are now present in five of the top six reserve lines. Furthermore, Morgan Stanley has also pointed out that between 2010 and 2017 reserve releases accounted for around 20 per cent (USD 73 billion) of the industry's operating earnings. This article talks about the state of reserves in the casualty business, and its potential to impact rates and balance sheet risk.

Life after HIM: Although 2017 was the largest insured catastrophe loss year on record – with insured losses above USD 140 billion – following the devastation caused by hurricanes Harvey, Irma and Maria (HIM) and other significant events, the catastrophes haven't reduced reinsurance capacity or caused significant price increases. This article analyses the impact of the losses on the reinsurance market and explains how the market is evolving.

The two faces of risk: For insurers, evolving enterprise risks have two sides – a potential for losses and growth opportunities. This articles looks at the opportunities and challenges present for insurers in two evolving risks, cyber and terrorism.

To read the articles and download the full magazine, please visit the JLT Re website here.