DENVER – The reinsurance industry is facing increased uncertainty about inflation, cyber responsibility and other issues heading into 2022, according to an expert panel.
More uncertainty in the world in general is leading some insurance companies to reduce capacity and questions about how the industry's capital should be used, they say.
Inflation, which has risen in recent months, is affecting property and accident coverage, Chirag said. Shah, New York-based Vice President and Head of Injury for Willis Re, a unit within the Willis Towers Watson PLC.
"He said during a session of the American Property Casualty Insurance Association's annual meeting in Denver on Monday.
Property insurance companies have been hit by rising material prices, but it is still unclear whether the higher costs will be temporary or long-term, says Alex van Dijk, Morristown, New Jersey-based president ̵
Liability insurance companies have been affected by social inflation, the term used to describe higher court rulings and settlements, he said.
"There has been a lot of discussion and debate about social inflation and how we keep up. with loss costs, ”said van Dijk.
The broader issue of global insecurity in general is also affecting the reinsurance market, said panelists.
There is a "significantly increased level of insecurity. President and CEO, reinsurance division, for Munich Re US, a unit of Munich Reinsurance Co.
. The public sector raises uncertainty about how to distribute capital based on increasingly uncertain events.
One area of particular concern for reinsurance companies is cyber coverage.
in cyber to really model what's out there, "said Mr Winter. 9002] Ransomware attacks, which have seen a sharp increase in the last two years, raise political issues for companies, he said.
"There is a moral hazard associated with the whole product, in my opinion, which must be resolved level beyond just the insurance community, to try to create some consistency in how we approach the problem of ransomware, ”said Shah.