With the property reinsurance market experiencing soft pricing for some time, WRIN.tv spoke with Jim Larkin, Head of Property Underwriting at Munich Re America, about the impact of Hurricane Matthew, and other factors affecting the market.
While it is unclear if Hurricane Matthew would have any impact on reinsurance renewals, Mr. Larkin believes the storm was a reminder about the exposures in the property market. And while decisions about FEMA flood mapping may have an impact on reinsurance, reinsurers are providing flood coverage. In fact, Munich Re is formulating its own opinions on flood risk and coverage. Munich Re was part of the inaugural reinsurance placement by the National Flood Insurance Program (NFIP).
Mr. Larkin points out that industry is concerned about climate change, and is spending resources to make people aware of the consequences. Munich Re is partnering with other organizations, such as the Insurance Institute for Business & Home Safety (IBHS), to improve building standards and educate the public.
The Insurance Linked Securities (ILS) market has begun to “level off” in standard property casualty lines, although Mr. Larkin is seeing increased interest in pandemic risk, medical benefits, longevity and mortality.
The major reinsurance brokers are introducing reinsurance platforms to facilitate placement. Brokers and reinsurers are hoping to gain efficiencies and better submission and claims data as a result.
For more of our coverage of the 2016 PCI Meeting, visit the WRIN.tv On Demand Library.