General Insurance news and articles written by acturies for actuaries - read the latest research pieces, today's news and latest articles in the non-life market.

The end of the cheapo repo?

,By Adam Gregory, Investment Officer at The Pensions Trust
Repo market background
Historically financial institutions have used the repo market for short-term intra-bank secured lending. The more secure and liquid the asset the more valuable the asset as security - hence why gilts are favoured.
With such high quality and liquid assets placed as collateral the cost of borrowing - the repo rate - has been relatively low and this has attracted a variety of investors from hedge funds seeking cheap (medium-term) leverage, to pension schemes seeking longer-term leverage to manage liability risk.
Typically a pension scheme will repo an existing gilt and use the cash received to buy another gilt thus doubling their exposure to that gilt. At the expiry of the repo contract the position must be ’rolled’ – a new contract agreed – or else the Scheme will return to having just the exposure of the initial gilt.
Although the repo market was not immune to the disturbance triggered by the collapse of Lehmans in 2008, by all accounts it held up comparatively well providing an alternative source of lending to the Bank of Eng...Read More

Terrorism – Using imperfect models

By Steve Coates, Chief Underwriting Officer, at Pool Re
However there are still classes of insurance where end to end modelling is very difficult and one of these is terrorism. Effectively terrorism didn’t exist as a distinct class of insurance until 1993 when the effect of the IRA campaign in England forced reinsurers to exclude this cover from property treaties, which in turn would have forced UK insurers to exclude cover from commercial property policies. Fortunately the UK Government stepped in and provided the solvency guarantee for an industry mutual, Pool Re, to be created. Terrorism cover was provided by this reinsura...Read More

Insurance Disruption; it’s coming from within

By Bill McCarthy, Managing Director UK and Ireland Insurance, LexisNexis Risk Solutions
However, there’s nothing like an existential threat such as the potential obsolescence of conventional motor insurance through driverless cars to elicit interest, and this at its heart is what makes disruption so appealing.
The industry is currently occupied with threats from the outside. In motor, for example, driverless cars are in test across the world.
Whilst the technology is still some years off commercialisation, the pace at which precursor techn...Read More

"Generation Lost" speaks - Global Risks Report 2014

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Lifestyle Actuary

The trappings of fast paced city lifestyles rarely take into account the charm and elegance that a room, a dinner or a cup of tea can afford; characteristics lost to a by-gone era of debutante balls and black tie for dinner.

The Luddite

Sam Richardson looks into the up and coming and the outgoing of the technology and gadgetry world in 2014.

Travelling Actuary

This month's Travelling Actuary takes us to the iconic Boston to experience New England at it’s very best.

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