Swiss Re’s Flood Toolkit grows
are now very low in many markets and we need to
move to more sustainable pricing levels.”
One way Swiss Re is tackling this challenge is by
seeking new opportunities for growth, instead of
competing on price in a saturated market. It notes
a big opportunity to supply flood reinsurance,
for example, complementing initiatives by the
National Flood Insurance Program.
It is working with clients to help them better
An increase in losses from unmodelled
non-catastrophe events has again
illustrated the need for rate increases,
Mohit Pande, head of US global property
underwriting, Swiss Re, told PCI Today.
Pande defined non-cat events as any
unmodelled catastrophe and includes losses
from tornados, hailstorms and manmade
disasters in this definition.
He accepted that the reason rates remain low
is the abundance of capacity in the market. This,
he said, means rates will likely remain stable in
the next renewal. But he noted that should not
prevent the industry pushing for a level that will
allow a more sustainable return on equity.
“It just illustrates that there is a further need
for an increase in rates,” he said. “After many years
of price erosion, we have reached an inflection
point and rates need to improve. The margins
Santiago de Chile
Beijing China | Bogota Colombia | Brussels Belgium | Buenos Aires Argentina
Labuan Malaysia | Lisbon Portugal | London United Kingdom | Madrid Spain | Manila Philippines
Mexico City Mexico | Milan Italy | Munich Germany | New Jersey USA | Paris France | Santiago de Chile Chile
São Paulo Brazil | Singapore | Tokyo Japan | Toronto Canada
publi_MapfreRe_210x130-ENG_05-18.pdf 7 1/6/18 14:29
understand this risk, and therefore write it.
“We are excited by the potential for this to
increase the total size of the pie,” Pande said.
But, he said, the key to unlocking this market
is technical advancements that allow insurers
to better understand flood risk—and therefore
Swiss Re has rolled out its Flood Toolkit,
designed to map and model flood risk, and to
help clients do this.
Pande said the company is already seeing
positive results from this. One client, Security
First, a Florida-based insurer, has written around
$1 million in premiums since it implemented
the toolkit in July and a 25 percent take-up rate
on flood eligible new business.
“It is about education and developing the
tools to give clients the confidence to underwrite
the risk,” he said. l