The threat of catastrophe losses from hurricanes may be re/insurers’ main concern when writing business in Florida—but, in fact, there are many arguably bigger challenges that are manmade, and therefore potentially preventable.
It’s not hurricanes that are really hurting Florida’s insurers, or even climate change—the problems are, at least partly, manmade. Moral hazard and attritional losses have helped bring Florida to crisis point.
That was the message from a recent discussion about the state’s market titled “The Florida insurance market crisis” at Intelligent Insurer’s Re/insurance Lounge, the online, on-demand platform for interviews and panel discussions with leading players in the market.
To consider the problems facing the insurance industry covering the state, and the possible solutions, key players coming at the market from a range of different perspectives joined the panel: Glenn Clinton, who has 30 years of property and casualty underwriting experience in both insurance and reinsurance, and is a managing director for US property reinsurance at insurance-linked securities fund manager ILS Capital Management; Matt Junge, head of property solutions for the US and Canada and head of property underwriting, US Regional and National, at Swiss Re, leading a team responsible for underwriting, pricing, and analysis of property treaties for clients across the US; Adam Schwebach, a reinsurance broker at Willis Re, focused on the Florida property market and a long-term Tampa resident; and Karen Clark, a pioneer in catastrophe risk modelling and the founder of Karen Clark & Company, which provides catastrophe risk modelling and management solutions to the industry.
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