Swiss Re’s most recent Sigma publication estimates $370M in economic losses last year with one third of it being insured. This is a 142% increase over their 2010 estimate.
This announcement is the latest insurance company press release citing crushing losses or a lack of profitability in recent years.
The insurance market remains well capitalized and it many sectors attempts to increase rate are rebuffed by continued competition for new business. Increases in reinsurance rates are causing many primary insurance companies to retain more risk on their balance sheets.
Calculated Risk Advisors is telling clients to continue to maintain a strong vigil on the financial health of companies they transfer risk too. With losses mounting and unprofitable underwriting continuing organizations must be extra vigilant in monitoring solvency on their insurance partners.