.jpg)
Casualty insurance has been a difficult line of business in many markets around the world for some time. The profit margins are generally quite thin, driven by long-tail challenges and inflated claims in areas like transportation, pharmaceutical product liability, and catastrophic property (to name just a few).
Despite this challenging backdrop, Swiss Re’s global head of casualty reinsurance, Jason Richards, remains optimistic. The global economy is growing and insurance premiums around the world are growing in tandem, he said. Swiss Re projects a 5% increase in insurance premiums over the next few years, which will stem from both property and casualty lines.
“Exposure is growing around the world, especially in large urban areas. As wealth increases, the demand upon insurers will grow and the demand for casualty insurance will also grow,” Richards noted. “Importantly, there’s also a very significant retention gap around the world, both in the short-term lines but also in the casualty space, presenting opportunities for growth.”
The past decade has been “a pretty…
