Annual Meetings-Natural Catastrophes - Josh Darr, Guy Carpenter

Pdf Summary

The document discusses the turbulent market conditions in the US Property Catastrophe market in January 2023. It highlights significant shifts in pricing, structure, and contract terms, with higher losses leading to price increases. The market experienced broad-based increases in retentions and a push for tightening terms and conditions. Renewal timing was delayed, leading to challenges in price selection. Reinsurers exiting the business impacted capacity, especially in lower layers. The market saw the greatest increase in Rate on Line Index since 2006, reaching record levels. Retentions increased due to reduced reinsurer risk appetites, impacting capital availability for companies. Loss trends and challenges from events like Hurricane Ian, labor shortages, and climate change impact are also discussed. Model vendors believe current models are suitable for assessing present-day risks, despite challenges in identifying climate change impacts in historical data. The report concludes with insights on top perceived risks, actions taken due to climate change concerns, and interests in different perils by region, emphasizing the need for a multi-pronged approach to risk assessment.

Asset Caption

Presented by:
Josh Darr, Guy Carpenter

Keywords

US Property Catastrophe market

turbulent market conditions

pricing shifts

contract terms

price increases

retentions

reinsurers exiting

Rate on Line Index

loss trends

climate change impact