In this virtual panel held by The Insurer TV, Paul Miller, Head of Catastrophe Strategy, discusses how exposure modeling needs to keep up not only with climate change but also with a changing society.
“We've got increased urbanization, we've got inflation coming in as well,” Paul said. “So, what impact does that have on the potential exposure?”
He also describes how models also need to consider such impacts as the growing number of homes fitted with solar panels.
“Looking at the change in property characteristics. If we think about severe convective storm, think about the impact of solar panels on a property,” Paul continues. “Is that being recorded properly?”
Paul goes on to describe how the unpredictability of potential exposure has driven a restructuring of the insurance industry.
“With the reinsurance market moving itself more away from those frequency-type events, those are now being retained by the insurance companies, impacting a lot of market dynamics, which need to be factored into this discussion,” he said. “The year has been spent looking at alternative forms of capital relief by the clients, outside of the traditional market; be that in the alternative space or be that by mutualization across certain insurance companies.”
Click image below to see video of Paul's participation in the panel
Click image below to see video of the full panel