Are primary insurance markets losing sight of the scale of the risks they underwrite? That is a real fear in today’s COVID-19 world in which reinsurers need to do more to understand the exposures they assume from their direct clients. Average return on equity measures are declining consistently, down to breakeven levels, according to A.M. Best. That performance is attributable to unfavourable loss reserve development.
The COVID-19 pandemic has opened up a Pandora’s box of significant coverage gaps that exist for business continuity losses. In 2020, pandemic BI losses amounted to a huge $11 trillion and on the back of ever-increasing globalisation, could reach as much as $23.5 trillion over the next three decades, according to some estimates.
Our new report explores how portfolio analytics can help casualty underwriters in managing and understanding their exposures.
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