GLOBAL LOCATIONS GCXTRANET GC CAPITAL IDEAS / MANAGING RISK / CAPITAL SOLUTIONS / BUSINESS GROWTH / KNOWLEDGE RESOURCES / THE COMPANY THE COMPANY Home The Company History Over 90 years of clarity, quantitative science, and putting clients first. At the beginning of the 20th Century, cotton production was the most important commercial enterprise in the American South, making the insurability of harvested cotton vital to the economic stability of the region. As a young man in the cotton insurance business, Guy Carpenter discovered that the business was haphazard and reactive. A year of big losses pushed the next year’s premiums too high; a lucky year sent prices down, often exposing insurers and reinsurers to more risk than they had bargained for. Carpenter had a better idea: rates based on a rolling average of losses over many years. The rolling average identified the signal in the noise of year-to-year fluctuations. The “Carpenter Plan” enabled insurance of all losses over a certain level. For the first time, producers and insurers could anticipate rates and manage costs. The insight that data – the more the better – could help clients anticipate perils and measure risks put Guy Carpenter on a trajectory that is still transforming the industry. In 1923 Carpenter met with cotton insurance brokers Henry W. Marsh and Donald R. McLennan during a transatlantic crossing. The merged firm would take the nascent science of quantitative analytics beyond cotton. Along with quantitative precision, precise language became a hallmark of the firm. Carpenter insisted on clarity: Contracts were more inclusive, citing only those perils that were excluded. Contract language written by Carpenter himself still appears in reinsurance contracts issued by our company and its competitors around the world. Guy Carpenter continues to serve some of its original clients – and clients that have come to us in every decade since. For them, and those who join us today, the durability of the firm’s leadership is more than a fact. It is a promise. Guy Carpenter Innovations Specialized centers of excellence that focus market knowledge and analytics on unique challenges 2 The first integrated financial analysis platform to support clients’ reinsurance and capital decisions 3 The first analytic solution to manage potential risk accumulation in personal accident portfolios 4 Cross-industry collaboration with the World Bank to reduce disaster vulnerability in developing regions U.S. patent #8452621B1 gives Guy Carpenter clients a clearer picture of the largest risk on their balance sheets. Guy Carpenter’s MetaRisk® Reserve™ predictive modeling tool for reserve risk is the first of its kind: a tool so easy to use that it can be integrated into a spreadsheet with any data, allowing our clients to perform sophisticated analyses to: Measure the risk that inflation poses to reserves Allocate capital more effectively Refine reinsurance strategies MetaRisk Reserve™ captures hidden inflationary trends in historical data, enabling clients to model how inflation increases alter their reserve picture going forward. Guy Carpenter innovation timeline MARSH GUY CARPENTER MERCER OLIVER WYMAN TERMS OF USE | PRIVACY POLICY | SITEMAP © 2013 GUY CARPENTER & COMPANY, LLC