TUESDAY
News
Re/insurers can step up to manage flood
17.10.17
to take risks away from the government—and
ultimately the taxpayer—in many other areas.
The way the mortgage reinsurance markets have
developed in recent years is a good example
of this in action, as is the way the private
market has helped depopulate Citizens, the
Florida Hurricane Catastrophe Fund.
He believes there are more areas that can
be explored. “There is a lot our industry can
help with but equally these are not always easy
problems to solve,” he said.
“For the industry to remain relevant it has
to tackle these problems. Primary insurers
are getting better at managing their risks so
reinsurers must partner and help solve new
problems, or I am not sure where it will be 50
years from now.” n
Eric Andersen
(Continued from page 1) the case for the value its
products bring to society and the fact they could
be utilised in other areas.
“The industry has taken a pretty hard shot but
it has been able to trade forward and pay claims
quickly with no disputes, no downgrades, no
drama,” he said. “A significant amount of cash
has already passed from reinsurers to insurers to
consumers and the value of the product is there
for all to see.
“Insurers could not write this business
without reinsurance. In some ways it is a shame
that discussions have turned so quickly to rates
and potential increases instead of the fact that
many reinsurers have been so supportive to
their clients and made early payments to help
the situation.”
Andersen believes the industry has the ability
Cat losses demonstrate value and resilience of industry
Mike Mulray
This represents the first major test for a
company that has grown rapidly since its board
made the decision to invest in growing Everest
Insurance through an organic growth strategy
almost three years ago.
Since then, it has made a significant
investment in new talent across the company
including executive ranks, line underwriters,
technology, operations, actuarial, and modelling
The insurance industry should view the
recent catastrophe losses it has suffered as
an opportunity to shine and demonstrate its value
and resilience to policymakers and policyholders
alike, Mike Mulray, chief underwriting officer of
Everest Insurance North America, the specialty
insurance operation of the Everest Re Group,
told PCI Today.
He said the human cost from some of the
recent evets has been quite shocking but this
is what the industry, and Everest Insurance, is
designed to do.
“We as a company are built to withstand
this,” Mulray said. “We have a fortress of capital
and excellent underwriting discipline and it is at
times like this we can step up and shine, show
leadership and really make a positive difference
through what we do.”
He said that although Everest will suffer
losses as a result of the hurricanes Harvey,
Irma and Maria, everything has been within
its expectations and he has been pleased with
the way the company’s risk and exposure
management systems have performed. The
Everest Group, including Everest Re, expects
the storms to cost it around $900 million net—
at the low end of what analysts were predicting.
and launched a number of new specialty
insurance products, boosting its growth. Mulray
said the acquisition of best-in-class talent has
been at the heart of this growth strategy while
also investing in existing talent through training
and mentoring programmes.
“It has been one of the biggest organic builds
the industry has seen,” he said. “At its core we
have been recruiting the best and the brightest
people. It has allowed us to transform the
company and shape it in the way we want. We
are very pleased with the results so far.”
On the underwriting side specifically, Mulray
added, the business has also invested heavily in
ensuring it understands its risk tolerances and has
a robust enterprise risk management strategy in
place—the core of his expertise during a career
with GE.
“We have been defining what the underwriter
of the future looks like,” he added. “They will be
data-driven and able to interact with technology
and machines. Will a machine ever make an
underwriting decision? No. But they will help us
make better decisions.
“I want underwriters who will kick my door
down and demand better data to work from,” he
concluded. n
4 | PCI TODAY | DAY 3: Tuesday October 17 2017 www.intelligentinsurer.com | www.bermudareinsurancemagazine.com