While geography is a critical element in any insurer's decision on whether to write a piece of business facing a catastrophe exposure, it should not be the only factor–with class of business and total value of an account also major considerations, research from MarketStance has revealed.
While it looks as if we'll make it through this hurricane season without a major catastrophe event, climatologists already are warning the insurance industry that global warming will continue to exacerbate both the frequency and severity of hurricane-related losses for years to come.
Rather than sitting back and worrying about what next year will bring, carriers would be well advised to use this interlude to review the management of their exposure to catastrophe risks in general, and hurricane exposures in particular.
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