The key findings of the survey:
• 64% of casualty underwriters agree that the soft market is the biggest challenge facing casualty re(insurers) today
• 25% of casualty underwriters say reducing premium is the biggest fear of a soft market
• Perhaps surprisingly, 17% of casualty underwriters say clashing or connected risks is the biggest fear of a soft market
• Worryingly, 70% of casualty underwriters can’t quantify the effect of a systemic casualty event on their portfolio
The key effects of the soft market would result in reduced margin and profit according to nearly three quarters of casualty underwriters polled in the survey while almost two third agreed that the soft market is the biggest challenge facing casualty reinsurers today.
Portfolio re-balancing (37%) and risk selection (37%) were considered by nearly three quarters of the survey participants to be the best remedies to counteract the soft market’s effects. The survey polled 60% of casualty (re)insurers who defined a systemic risk event as a large loss clash event across a number of casualty product lines.
Russell Group MD Suki Basi, said: “The survey highlights concerns that are shared by casualty (re)insurers I have been speaking to this year, which is that their class of business is facing a range of exposures that they are unable to name, let alone model. Yes, the soft market is the primary concern and understandably so but increasing exposure and risk accumulation are concerns
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