Hurricane Harvey demonstrates the need for catastrophe modelling to move beyond property losses, said Russell Group managing director, Suki Basi.
Basi was speaking at the Houston marine insurance seminar on port accumulation.
"What Harvey reinforced is that the insurance industry needs to understand their exposures from such events in each of the sub-classes.
Furthermore, whilst the insurance industry's initial focus is on all risk exposure, they also need to understand their exposure from other connected risks such as the supply chain, cyber and political violence" Basi said.
Russell Group's approach to port accumulation covers all trade to and from G20 countries, political risk watch zones and countries prone to flood, according to a company statement. By adopting a holistic approach, underwriters and insurers will get a better understanding of their underlying port accumulation risk prior to capital commitment, Basi noted.
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