evan-greenberg_chubb-1-1-1-1
1 February 2023Insurance

Chubb likes property cat as latest terms outrun loss trend: CEO Greenberg

Poperty/casualty insurer  Chubb likes the look of the property catastrophe market and could be set to increase its insured exposures, CEO Evan Greenberg (pictured) has declared.

Greenberg cited short tail property pricing up 14.8% at last measure in response to cat experience, inflation and reinsurance pricing and availability. That comes well ahead of a 6.8% loss cost trend, he noted.

“We have a very clear mind about our standards, risk-adjusted, we would expect to see in property cat to increase our exposure,” Greenberg said. “If the conditions are right in both terms and in pricing, then Chubb is a risk taker in property cat. We will increase.”

“Property cat is an opportunity for us,” Greenberg told the analyst call following the release of its fourth quarter and full-year 2022 earnings.

“However it is not a business we need to chase by any means and so we will only deploy additional capital to take more exposure if we like the trade.”

Casualty insurance markets, in contrast, are frequently showing a much smaller and sometimes precarious gap between rate change and loss cost trend and Greenberg has a call to rivals to hold the line. Social inflation could drive the price adequacy challenge.

“For the majority of casualty lines, pricing is adequate,” and overall Greenberg sees “a pretty steady market.”

“But what I do see in certain lines of business is either a lack of recognition of the loss cost environment, naivete around the loss cost environment or just a failure of management to be in touch and drill in and show leadership, to take action,” Greenberg said.

Social inflation is the loss cost wildcard. “Because there is no room.” Greenberg said, “and this can get away from you pretty quickly.”

Did you get value from this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.

Already registered?

Login to your account

To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.

Two Weeks Free Trial

For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk


More on this story

Insurance
1 February 2023   CEO says it is staying on top of inflation and reinvesting at ‘substantially’ higher rates.
Insurance
3 February 2023   ‘You better keep pace,’ Chubb CEO Greenberg says. ‘This can get away from you pretty quickly.’
Insurance
2 March 2023   The executive has held leadership roles at Chubb Tempest Re for more than 15 years.