Guy Carpenter becomes ‘sole’ reinsurance intermediary for CEA California Wildfire Fund

The California Earthquake Authority (CEA) has appointed Guy Carpenter as sole reinsurance intermediary for its recently created California Wildfire Fund to develop a risk transfer and reinsurance strategy.

Under the deal, the global risk and reinsurance specialist, which is also a Marsh & McLennan business, will help increase the longevity of the fund and build up its claims-paying capacity.

Guy Carpenter said its “proven track record in analytics, as well as its strategic partnerships” had helped it win the business. These include its partnership with AIR Worldwide for wildfire modeling data and exclusive license of the Tyche financial and capital modelling platform, as well as its proprietary GC MetaRisk solution, which enables the company to create real-time capital models and test optimal structures for the program.

David Priebe, vice chairman at Guy Carpenter, said: “We are delighted to be selected as the exclusive reinsurance and risk transfer advisor for the California Wildfire Fund. We are looking forward to bringing our public sector and wildfire expertise to deliver results for this very important initiative for the residents of California.”

Guy Carpenter’s wildfire risk portfolio includes its proprietary GC Wildfire Diagnostic tool, which offers hazard-based accumulation reports; its Annual Wildfire Symposium; direct support of reinsurance solutions for utilities, including catastrophe bond solutions; wildfire catastrophe modeling; meteorological expertise; and capital modeling solutions.

Brokerage services for this program will be jointly delivered by Guy Carpenter’s California offices in Glendale and Mission Viejo.

“Guy Carpenter is focused on helping the public sector at the national, state and municipal levels. By leveraging private capital for public risks and innovative tools, we are able to help public entities mitigate risk and improve their communities,” Priebe said.

The company already represents 31 natural catastrophe pools globally.

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