Share on Facebook Share on Twitter Share on Google+ Share on Linkedin John Horton, EVP and Chief Marketing Officer at AMRISC, speaks with WRIN.tv about lessons learned in ten years since Hurricane Katrina, the still-softening property insurance market, alternative capital, big data risks and more. Ten years after Katrina, and beyond the human tragedy and poor government response, the insurance industry has seen many changes in demand surge and storm surge. Demand surge causes a tremendous increase in cost of (re) building materials after an event. And the unprecedented storm surge from Katrina continues to affect the way property insurers and general underwriters view such exposures. AMRISC presented their view of the property market during the 2015 NAPSLO Convention. Its Technical Model Price looks at terms and conditions, pricing, premium and coverage types. Mr. Horton says the property market is on a “soft-ward glide.” AMRISC is seeing a 10 percent reduction in pricing tear over year over the last 18 months. AMRISC expects pricing trends to continue. There is capacity available making it a “buyers’ market”, but it is still profitable. Mr. Horton says the new capital in the property insurance market is here to stay. It is not innocent capital. Exposures are understood thanks to risk models. The increased supply of capital combined with steady demand pushed prices down. In addition, Mr. Horton says Big Data is here to stay as well. He notes that the same data used to measure risk is the same data used to run companies…and it’s “under attack.” He believes there will be more attention paid to protecting risk data going forward. Today, Managing General Underwriters (MGUs) are asked to be experts in risk transfer, risk modeling, financials and auditing. MGUs must earn the support of carriers. He believes MGUs need to steer clear of being paralyzed by analysis. He also sees the value of marrying the best of new technologies and data analytics with “old school underwriting” for the next generation of underwriters. For more from the 2015 NAPSLO Convention, visit the WRIN.tv On Demand Library.