Video: Guy Carpenter’s Massimo Reina Joins Panel of Senior Industry Leaders

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Guy Carpenter’s Massimo Reina, CEO Europe, participated in a virtual panel hosted by The Insurer to discuss the impact of natural catastrophes during 2021, particularly regarding elevated losses from secondary perils.

While 2021 was one of the largest catastrophe years on record, Massimo and other industry executives encouraged carriers to focus on future availability of coverage rather than emphasizing too heavily the recent spate of losses.

“The market should not overreact to one year. The Bernd storm (with heavy European flooding), for example, is the type of event that climate models suggest would occur more frequently. And so we should check that the models capture these types of events with reasonable frequency, but it doesn’t mean they will happen every year.”

To what extent the prevalence of secondary perils is attributable to climate change, as well as making sure these evolving patterns are appropriately modeled and quantified will continue to be major questions for the industry.

“I think it’s very hard to put a number on this,” Massimo said. “It is clear that climate change is having an impact on certain types of events. Obvious ones are flood, wildfires, of course, and convective storms. This has put a focus on a need to better understand all material perils and not just the ones that drive the worst case events which are wind and earthquake.”

CEO panel calls for focus on future climate impacts amid escalating natural catatrophe losses