A.M. BestTV at Rendez-Vous: Modelers Warn About Surging Post-Catastrophe Costs

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)-- In this ^A.M.BestTV episode at the annual Rendez-Vous de Septembre (Rendez-Vous) conference in Monte Carlo, Monaco, modeling executives, along with Greg Carter, A.M. Best managing director, analytics, assess the long-term costs of recent U.S. storms, particularly amid Florida's complicated litigious environment, Texas' complex commercial facilities and the makeup of industry loss warrantees. Click on http://www.ambest.com/v.asp?v=rvs5917 to view the entire program.

“Claims emerging from these catastrophes cover a number of different areas. A.M. Best sees residential property, commercial businesses and business interruption as the likely main categories of claims,” said Carter. “At this point, A.M. Best is not considering these storms to be industry-changing events, although these are some of the largest storms that have occurred for several years and the losses are looking to be potentially quite high numbers.”

Jay Guin, chief research officer, AIR Worldwide, addressed the role catastrophe modeling has played in the industry in predicting these various storms.

“The industry does not expect companies to be in financial trouble this season, and I believe a large part of it is due to the relevance of catastrophe models and how risk is managed today as opposed to several decades ago. The industry has learned a lot of lessons, and while every storm is unique and comes with its own set of complexities, the models have evolved in a very big way whereby we can triangulate some of the challenges and come up with estimates,” he said.

For full video coverage of the Rendez-Vous conference, including exclusive executive interviews, visit http://www.ambest.tv/rvs17.

Other people that appear in this episode:

Robert Muir Wood, chief research officer, Risk Management System.

Recent episodes of ^A.M.BestTV include:

Rendez-Vous: Reinsurance Outlook Remains Negative, but With Possible Upsides, Say A.M. Best Leading Analysts: Stefan Holzberger, senior managing director and chief rating officer, and Greg Carter, managing director, analytics, A.M. Best, reviewed the outlook for the reinsurance sector and how recent catastrophes could affect the market at the annual Rendez-Vous de Septembre conference: http://www.ambest.com/v.asp?v=rvs3917.
Rendez-Vous: Global Reinsurers See More Than Catastrophe Risk on Horizon: Reinsurers and related professionals gathered at the annual Rendez-Vous de Septembre conference say risks such as mortgage and cyber are capturing industry attention: http://www.ambest.com/v.asp?v=rvs1917.
Surplus Lines Pricing Encounters the Market's 'Rocky Bottom': Indications show accelerating growth for the excess and surplus sector, driven by a growing economy, shifting energy sector and pricing trends that may prove to be unsustainably low: http://www.ambest.com/v.asp?v=wsiapanelrecut917.
Fewer Bright Lines Separate Reinsurance From Third-Party Capital: A panel of rating, reinsurance and securities executives review the current state of the insurance-linked securities sector and how it's changing global reinsurance markets: http://www.ambest.com/v.asp?v=ilspanelrecut917.

^A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View ^A.M.BestTV episodes at http://www.ambest.tv.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.