If you care about what’s happening in the world of property and casualty (P&C), then this is the place to be. Each week, we serve up a bite-size roundup of the latest news, hot topics, and (admittedly subjective) tidbits to keep curious insurance professionals, like you, in-the-know.
Quote of the Week:
“The overarching message here is pretty clear. If we think just carrying on with business as usual is going to work for us then we risk becoming irrelevant in the eyes of our customers. We can either see decreasing value in the products and services that we provide or alternatively we can change and realize what we think is a very, very significant opportunity.” -John Neal, CEO of Lloyd’s
- ‘Business as usual’ is risky business... Insurers risk becoming irrelevant in the eyes of their customers if they decide to carry on with a ‘business as usual’ approach, said John Neal, Lloyd’s CEO, at a conference this week where he went on to say, “If your strategy for good performance is we’ll wait until the good times return, that’s simply not going to work.” Read more about why change is fraught with risk, but so is staying the course…
- Speaking of business as usual... FEMA has postponed the rollout of its new federal flood insurance rating plan for the NFIP (Risk Rating 2.0) until October 2021 citing the need for more time to do a “comprehensive analysis of the proposed rating structure so as to protect policyholders and minimize any unintentional negative effects of the transition.”
- Catastrophe models need to change to account for climate change 👏... And there’s a new science for that called “extreme event attribution” which is meant to address concerns about whether catastrophe models reflect the current risk of climate change by quantifying how climate change is affecting the return period of certain events.
- Stronger hurricanes = higher losses... New research has found that the frequency of the worst hurricanes has increased 330% over the last century in the U.S. and has become the costliest disaster. The growing number of powerful hurricanes is the key factor in increasing losses.
- Wildfire risk showing up in annual reports 🔥 The number of S&P 500 firms flagging wildfire risk in annual reports has increased dramatically over the past decade along with wildfire suppression costs which topped $3 billion last year. Read why underwriting and managing wildfire risk requires a more strategic P&C approach...
Missed last week’s Friday Five? Check it out here.
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