OLDWICK, N.J.--(BUSINESS WIRE)--Aug 20, 2018--In this A.M. BestTV episode, Sridhar Manyem, director, and Jason Hopper, associate director, both in A.M. Best ’s industry research and analytics department, said losses from this year’s numerous wildfires in California will likely impact pricing and underwriting for the state’s homeowners market. Click on http://www.ambest.com/v.asp?v=wildfires818 to view the entire program.
Manyem spoke about how losses so far in 2018 compare with that of 2017, which was also a very destructive wildfire season in California. “The situation is still evolving,” said Manyem. “Major wildfires continue to burn across California. A.M. Best believes that the amount of damage that has happened in 2018 will be comparable or greater than the amount of damage that happened in 2017. We think that it is still going to be an earnings event. For some insurers, it could be a capital event. We will know the more complete picture as things stabilize.”
Hopper addressed the issue how this will change the homeowners market in California in terms of availability or pricing.
“A.M. Best expects some price increases throughout the state, more so where fires have already destroyed some structures,” he said. “It might also cost a little more to replace any structures that might get burned down a second time, and there will be more changes in underwriting process and loss mitigation strategies. Additionally, reinsurance costs could go up if pricing continues to increase.”
Recent episodes of A.M. BestTV include:Captives Tap Reinsurers for Capital, Business and Data Support, Says Panel: At the Vermont Captive Insurance Association conference, a panel of captive insurance and reinsurance experts said captives, which are typically smaller insurance organizations, look to reinsurers as much for capital as for business expertise: http://www.ambest.com/v.asp?v=reinsurancepanel818. Prospect of Federal Rules for Cyber Puts Pressure on Insurers and States, Say Panelists: Captive insurance executives said new rules at the federal level on cyber security would pre-empt many state standards, but also would hasten the adoption of cyber strategies: http://www.ambest.com/v.asp?v=cyberreg818. Better Movement of Information Via Blockchain Should Spark Captive Growth, Say Executives: Rocco Mancini, consultant, captive solutions, Marsh, and Havell Rodrigues, chief executive officer, Adjoint, said industry participants and regulators have seen the benefits of blockchain technology and are taking early steps to widen its adoption: http://www.ambest.com/v.asp?v=blockchain3818. Insolvencies Tied to RRGs Formed for Short-Term Reasons, Says Medical Liability Panel: Captive experts say that some risk retention groups (RRGs) that were formed to take advantage of temporary hard-market conditions had poor outcomes compared with RRGs that pursued better underwriting and reserving practices: http://www.ambest.com/v.asp?v=medmalrrg818.
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SOURCE: A.M. Best
Copyright Business Wire 2018.
PUB: 08/20/2018 08:40 AM/DISC: 08/20/2018 08:40 AM