Whilst there is evident concern at the high risk, high return nature of the speciality insurance market, the industry continues to face a number of challenges, particularly the relevance of reinsurance and a perceived lack of underwriting talent in the marketplace.
Computers and the internet were designed to make our lives easier. Regrettably, these modern technologies are misused to take advantage of others. The rapid growth of cyber-crime has led to a huge demand for insurance protection against cyber-attacks. Insurance reports show global losses due to cyber-crime were in the region of $445 billion in 2013.
As for the property and casualty markets, huge challenges lurk on the horizon with the global market writing premiums estimated at $140 million in 2013 in respect of speciality insurance. Speciality insurance includes high hazard, cyber liability and other non-standard general insurances.
Whilst there is evident concern of the high risk, high return nature of the speciality insurance market, the industry continues to face a number of challenges, particularly the relevance of reinsurance and a perceived lack of underwriting talent in the marketplace.
Following a number of discussions with industry experts, Larry and David were instrumental in helping to pioneer new solutions, in unravelling the LMX spiral in respect of the 1992 and prior year losses for the marine, aviation and property catastrophic claims. This laborious exercise provided us with a real insight into the insurance and reinsurance world. Needless to say, our insurance team at Buchler Phillips is well placed to advise on Schemes of Arrangements and other potential related challenges facing this industry.