P/C Insurers Face Challenging Claims Dynamics as Frequency, Severity Rise: Swiss Re

The pace of claims growth in the liability line of business challenges the insurability of those risks, said Swiss Re’s sigma report titled “Risks on the rise as headwinds blow stronger: global economic and insurance market outlook 2024‒25.”

“Liability lines comprise the majority of P&C industry reserves, and the adequacy of reserves after the inflation surge is emerging as a key risk,” the report said, noting that reserves in the US for lines “such as commercial motor and certain general liability categories are already viewed as deficient.”

The article unravels the key points of the report. A must read of 10min.

Before and After: Managing Through the Cycle of a Cyber Attack

In such a fast-changing cyber risk landscape, experts say preparation is key, and one element that can help with that is cyber insurance.

“Cyber insurance is such a critical tool when you think about having a policy and having an approach to handling incidents and incident response,” said Xing Xin, co-founder and CEO of InsurTech Upfort. “One of the best partners and tools you can have in managing that risk is a cyber insurance policy.”

Listen to this episode of The Insuring Cyber Podcast (10min) or read the article (5min).

Harnessing the power of quantitative risk assessment

In an era where digital threats loom larger than ever, businesses need to pivot from merely defending against cyberattacks to building an infrastructure that can absorb and adapt to them. The new paradigm? Cyber resilience.

A strategy that marries traditional cybersecurity approaches with a forward-thinking model of risk mitigation and security by design factors in every facet of a business’s operations. Supporting this paradigm shift lies a powerful tool: quantitative risk analysis.

This is an in depth discussion on how quantitative risk analysis can be conducted. With many actuaries taking on the role of Chief Risk Officer it is worth reading. 8min read

Many Australians Abandon Insurance as Premiums Surge on Climate Costs: ICA Head

Over a million households now face home insurance affordability stress, Andrew Hall said Thursday in a speech in Canberra. As a growing number of people dump or scale back their insurance, a “protection gap” is emerging, he said.

How different is the market in Australia compared to SA? Can you list a few differences and similarities? How would those differences play out in terms of the “protection gap”? 2min read.

You may be interested in reading about the Australian Actuaries Climate Index here. From their website the Actuaries Institute (Australia) appears to be focusing efforts on data science and climate change. What can we learn from them that we can apply to our African context?”

Piercing Through Rain, Smoke and Fog: How Radar Satellites See Catastrophes

The potential for satellite technology to revolutionize claims management has long been recognized but has only recently been realized with technological advancements. Satellite-based data can give the insurer a “head start” on the event, according to Stephen Lathrope and Andy Read at the ICEYE, the microsatellite manufacturer and catastrophe monitoring company.

Appreciate how technology can be integrated into the claims ecosystem in this article. There are also links on this site to other articles and award winning videos on this topic. 5min read