Reinsurance

Recently one of my colleagues argued that it was time for a “bonfire of PMLs”, as the past five years have shown that the industry has seriously underpriced the kind of $10bn-$20bn loss events that have been happening since Harvey, Irma and Maria landed in 2017.

“We can't lose sight of the fact that we are in the business of actually mitigating risk,” the executive said in an interview with Inside P&C.

Plus all the highlights from the Reconnect conference and the week’s top news.

The automotive company’s total costs for the recall are expected to eventually tally up to around $1.8bn.

Ongoing high claims from risks such as winter storm, wildfire or convective storm are playing into the climate-change debate over whether and to what extent cat reinsurers are mispricing their business.

The portfolio has no active client relationships and was underwritten from 1969 onwards.

The updated loss estimates come on top of the $14bn to $19bn industry loss range the analytics firm provided last week.

The quake caused building damage and downed power lines, leaving at least one person dead.

The executive said a capital-light structure would enable continued investment in underwriting, origination and servicing.

The reinsurer warns that climate risks could increase average weather-related property cat losses in advanced markets by more than 60%.

Plus the latest senior executive moves and all the top news from the week.

The modeller excluded precipitation-induced flood losses from its estimate, which comes in above the $18bn from KCC.