Swiss Re’s economists predict “inflationary recessions” hitting major world economies over the next 12-18 months, and while recessions spell less insurance demand and inflation means higher claim costs, inflation will also drive a continued hard market.
With an overall combined ratio in excess of 100 for the first time since 2017, private passenger auto joined homeowners in unprofitable territory last year, prompting carriers to respond with pricing and underwriting actions.
NEXT Insurance and Thimble are the latest InsurTechs to lay off part of their workforce this year, with NEXT citing challenging economic conditions and both InsurTechs pointing to an increased focus on profitability.
Environmental groups are seeing increased success in California courts arguing that wildfire risk wasn’t fully considered in proposals to build homes in fire-prone areas that sit at the edge of forests and brush.
Natural catastrophes rank as the top cause of corporate insurance losses in the U.S., accounting for nearly one-quarter of claims in the past five years, Allianz Global Corporate & Specialty SE said in a report.