Report: Scenario Testing Our Mutual Future, Year 3

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Guy Carpenter’s Regional and Mutual Company Segment, in partnership with the National Association of Mutual Insurance Companies (NAMIC), is pleased to announce the release of the Scenario Testing Our Mutual Future report. This report is the third in a series of annual studies designed to measure the exposure of the US property/casualty (P&C) industry and any individual statutory filer to a set of pre-defined stressed scenarios using Guy Carpenter’s BenchmaRQTM model. 

In 2023, property insurers faced a record number of catastrophic weather events. However, higher primary rate levels along with expected cooling of inflation should lead to non-catastrophe loss costs that are more manageable. In this latest round of testing, the adverse scenarios modeled were:

  1. Severe Weather
  2. Financial Crisis
  3. Stagflation

While this research is co-branded with NAMIC, its relevance is not limited strictly to mutual companies. It provides valuable information on how these scenarios could potentially affect the balance sheets of any property/casualty insurer.