Report Provides Insight into the Marine and Energy Reinsurance Marketplace
New York, January 24, 2005 – Guy Carpenter & Company, Inc., the world’s leading risk and reinsurance specialist and a part of the Marsh & McLennan Companies, Inc. (NYSE: MMC), has released its comprehensive Marine & Energy Reinsurance Review Report 2005, which identifies key influences driving decision-making in the marine and energy reinsurance marketplace.
The 2005 report highlights issues regarding construction risks, marine hull war risks, terrorism, regulatory changes, rogue waves and the 2004 hurricane season. The report also includes an overview of reinsurance market capacity, renewals at January 1, 2005, an overview of the development of the CL370 run-off clause in the UK and ratings for major marine markets.
�It traditionally has been viewed as more difficult to model or actuarially assess risk in the marine and energy business sector because of its specific nature,� said Tony Pointing, head of the company�s Marine and Energy division in the UK. �Identifying and analyzing risk, however, are becoming increasingly important as the first steps in both the purchasing and underwriting of marine and energy reinsurance.�
Among the report�s observations:
With the construction risks marketplace proving to be a significant issue for marine hull underwriters, the report addresses the existing problems and solutions offered
and anticipates likely future changes.
The main focus by reinsurers at 2004 year-end was the mounting Hurricane Ivan loss to the offshore energy market � at the time of writing, this is estimated easily to exceed US$2 billion.
As reinsurers continue using computer-aided rating programs to determine pricing and many marine underwriters are increasingly answerable to non-marine management, a larger focus on exposure analysis, as well as a possible restructuring and pricing of marine business, might be expected.
Copies of the report, Marine & Energy Reinsurance Review Report 2005, are available for download at www.guycarp.com.
Guy Carpenter & Company, Inc. is the world’s leading risk and reinsurance specialist and a part of the Marsh & McLennan Companies, Inc. Guy Carpenter creates and executes reinsurance and risk management solutions for clients worldwide through more than 2,400 professionals across the globe. The firm’s full breadth of services includes 16 centers of excellence in Accident & Health, Agriculture, Alternative Risk Transfer, Environmental, General Casualty, Investment Banking, Life & Annuity, Marine and Energy, Professional Liability, Program Manager Solutions, Property, Retrocessional, Structured Risk, Surety, Terror Risk, and Workers Compensation. In addition, Guy Carpenter’s Instrat® unit utilizes industry-leading quantitative skills and modeling tools that optimize the reinsurance decision-making process and help make the firm’s clients more successful. Guy Carpenter’s website address is www.guycarp.com.