LONDON (Reuters) – International property and casualty insurers confirmed “alarming” underwriting losses in 2022 as pure catastrophes elevated and danger fashions didn’t sustain, a report from consultants Capgemini mentioned on Wednesday.
International insured losses from pure catastrophes have been surpassing $100 billion yearly lately, pushed greater by points equivalent to winter storms. Trade sources see local weather change and elevated constructing in uncovered areas as contributing to the losses.
The insurers’ world mixed ratio, a measure of claims and bills in opposition to premium income, was 103% in 2022, Capgemini mentioned. A degree above 100 signifies an underwriting loss. Property insurers have suffered three years of underwriting losses up to now 4 years, the report mentioned.
Solely 27% of insurance coverage executives surveyed imagine their companies have superior predictive modelling capabilities.
“Correct danger prediction and pricing have gotten more and more difficult and resulting in insurability considerations,” Anirban Bose, Capgemini monetary providers strategic enterprise unit CEO, mentioned within the report.
The report gathered data from 18 insurance coverage markets, together with Britain, Hong Kong, India and america, by means of polling of insurance coverage prospects and interviews with insurance coverage executives and underwriters.
