Tag: catastrophe

Credit FAQ: Understanding S&P Global Ratings’ Request For Comment On Proposed Changes To Its Insurer Risk-Based Capital Adequacy Methodology

Mary Pat Campbell

Link:https://www.spglobal.com/ratings/en/research/articles/211206-credit-faq-understanding-s-p-global-ratings-request-for-comment-on-proposed-changes-to-its-insurer-risk-bas-12183007

Graphic:

Excerpt:

The main reasons for the proposed changes to our criteria include:

Incorporating recent data and experience since our last update of the insurance capital model criteria;

Enhancing global consistency in our risk-based capital (RBC) analysis;

Increasing risk differentiation in capital requirements where relevant and material to our analysis, as well as reducing complexity where it does not add analytical value;

Improving the transparency and usability of our methodology, such as with our proposal to supersede 10 related criteria articles; and

Supporting our ability to respond to changes in macroeconomic and market conditions by introducing sector and industry variables.

A list of changes to our proposed criteria appears in the RFC and in the appendix of this article.

Author(s): 

Simon Ashworth, Ali Karakuyu, Carmi Margalit, Eunice Tan, Sebastian Dany, Olivier J Karusisi,	Ron A Joas, Mark Button

Publication Date: 6 Dec 2021

Publication Site: Standard & Poors

Annual Report on the Insurance Industry

Mary Pat Campbell

Link:https://home.treasury.gov/system/files/311/FIO-2021-Annual-Report-Insurance-Industry.pdf

Graphic:

Excerpt:

Catastrophe losses of $61 billion in 2020 were notably more severe than in 2019, with a record number of
catastrophic events in the United States in 2020.46 Despite the more severe catastrophic event
losses, lower losses in personal and commercial auto and workers’ compensation lines kept total
loss and loss adjustment expenses flat from 2019 to 2020. Reserve development was again
favorable in 2020, adding to underwriting profits. Figure 24 shows losses from catastrophic
events in the United States since 2016, and Figure 25 shows reserve development over the same
period.47 The expense ratio decreased very slightly from 2019 to 2020.

Publication Date: September 2021

Publication Site: Federal Insurance Office

We’re Going The Wrong Way

Mary Pat Campbell

Link: https://www.dailyposter.com/were-going-the-wrong-way/

Graphic:

Excerpt:

Science has provided America with a decent idea of which areas of our country will be most devastated by climate change, and which areas will be most insulated from the worst effects. Unfortunately, it seems that population flows are going in the wrong direction — today’s new Census data shows a nation moving out of the safer areas and into some of the most dangerous places of all.

…..

Some of the examples are genuinely mind-boggling. For instance, upstate New York is considered one of the country’s most insulated regions in the climate crisis — and yet almost all of upstate New York saw population either nearly flat or declining. At the same time, there were big population increases in and around the Texas gulf coast, which is threatened by extreme heat and coastal flooding.

Similarly, the city of Philadelphia is comparatively well situated in the climate crisis — but it saw only modest population growth of 5 percent. It was surpassed on the list of biggest cities by Phoenix, which saw an 11 percent population growth, despite that city facing some of the worst forms of extreme heat and drought in the entire country.

Author(s): David Sirota, Julia Rock

Publication Date: 12 August 2021

Publication Site: The Daily Poster