London-based insurance and reinsurance group Beazley announced its results this morning, with an interesting statement about climate change and how it is changing the property insurance and reinsurance underwriting landscape.
Although the company has also put the transparency of its third market and the popular Smart Tracker group, after renewing its written shares earlier this year, Beazley would have given comments that are read in depth. , by necessity, including the insurance-linked insurance market (ILS).
Today’s comments are very important, because they emphasize a theme that we have been following, which is the elimination of serious risks, or the realization of companies that it may not be as profitable as they thought.
Climate change has changed the recruiting game, seems to be Beazley’s opinion on this.
The company also reported a “decrease in natural disasters” in the first half of 2022, which led to its restructured property and insurance division delivering a combined ratio of 77%, much better than the previous year’s 101%.
As a result, the profit of the division doubled to $44.1 million.
Beazley sees that climate change is changing the landscape, it seems, which gives him confidence in his ability to add value there.
“When climate change makes listed goods more difficult, and therefore less stocked, the combined book of goods will be able to respond better,” Adrian Cox, Chief Executive Officer of Beazley wrote in a statement issued this morning.
Beazley has a desire to grow this business it seems now, which may be part of the response to the level of natural disasters in public accidents and property insurance and reinsurance in general, and it seems that the company is confident in its ability to increase profits in a changing climate.
“We are ready to expand the business, especially in the United States where we are focused on building more and more diversified facilities that manage the business with environmental risks that cannot be dealt with, especially outside of the US environment,” Cox continued. he explained.
Many Lloyd’s underwriters have dropped exposure to property in recent years, but perhaps the tough reinsurance market and cat risk will change that?
Beazley is putting in the work to understand the weather and how property risk decreases.
“To deal with the climate change impacts on the environment and the cases we’re dealing with we’re using outdoor models and our climate-sensitive models at sites that last 25 years,” Cox said.
The risk factor was thought to have been very beneficial with the advent of the large market and leading models that made it easy to participate.
But Beazley clearly sees that the environment is changing and the climate is changing and that this is changing the risk profile, making internal expertise and risk knowledge, as well as the ability to draw and write, very important for those looking for property risks and disasters.
Of course, the ILS financial market is well aware of this, hence the huge investment in modelling, actuarial and underwriting, technology and the latest techniques.
Although the risk seemed to be of high value, the need for expertise to write and establish a defensive environment that can be done around, in all years but the most lost years, has been done.
The removal of goods can be present, according to the awareness of the problems caused by disasters, the weather, our climate, and the effects of inflation, on the exposure of goods.
But, we believe that the risk will be valued, sold, cut, cut and distributed or distributed, over time, so what many see as sales is an ongoing process under the heading of innovation in all companies.
For companies like Beazley, we can see other major insurers pushing a similar message, the opportunity to rebuild the tunnel around the assets and especially the catastrophic risks, explaining the rise of global risks and the underwriting process, it sounds like a message or a mantra at this time of the market.
What this means is that, at high market prices, we are seeing companies like Beazley building up their space with cat books, as Cox says in his statement indicating that the business sector is in the future.
Which means we’ll probably see more opportunities for third-party ILS providers to work with Beazley and maybe we’ll see Beazley support for malware one day.