As economic output plummets, re/insurers are bracing themselves for a tough road ahead. Intelligent Insurer asks two industry experts what the biggest risks are and how the sector will tackle them.
“Based on the likely economic conditions in 2020 and beyond, we could see a reduced demand for P&C insurance.” Stefan Holzberger, senior managing director and chief rating officer at AM Best Rating Service.
· Virus aids conditions that could speed arrival of hard market
· Equities and real estate investment classes worst hit
· Primary companies may seek capital relief from reinsurance partners
· Connectivity exposure and risks from interlinked perils "hard to quantify"
Experts highlight the pressure points and areas for hope for re/insurers as the global economy buckles under the strain of COVID-19 disruption.
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