Sustained increases in casualty pricing in the auto insurance lines are due in part to losses penetrating primary insurance and penetrating the umbrella level. That, according to Gerry Skalka, SVP and Head of Casualty Underwriting at Munich Re. He also notes higher awards from jury verdicts are having an impact on casualty pricing. He remains confident that the market will remain prudent in dealing with these changes.
Mr. Skalka believes the industry is making progress in assessing and insuring cyber risk. He points to risk analysis and accumulation models that are being used to manage portfolios. Other emerging technologies have major implications in casualty underwriting as well. Onboard devices that measure driving habits influence the development and implementation of loss control and safety programs. As a result, he sees a more collaborative relationship evolving between insured and insurer, with data influencing ratemaking, classification development, loss and exposure trends. With more and better data, underwriters will be more confident and efficient going forward.
Mr. Skalka sees Munich Re’s distribution strategy related to relevance. He points to Munich Re’s commitment to brokers as well as the film’s significant investment in innovation and product development.
For more from the 2016 PCI meeting in Dallas, visit the WRIN.tv On Demand Library.