The property and casualty insurance industry is suffering from an unwelcome surprise in its loss portfolio, as areas once perceived to be at low risk for catastrophes are generating costly cat losses, says a Guy Carpenter report.
In its report, "Cold Spots Heating Up: The Impact of Insured Catastrophe Losses in New Growth Markets," Guy Carpenter says that as insurance penetration has increased in developing countries, the distribution of catastrophe losses is shifting as well.
From 2002 to 2008, 77 percent of catastrophe-insured losses were dominated by the United States. Within the past three years—the period 2009 to 2011—Asia (including Japan) has taken up slightly more of the losses—35 percent versus 33 percent for the United States. During the 2002 to 2008 period, Asia accounted for only 9 percent of catastrophe losses.
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