U.S. Casualty: Storm Clouds on the Horizon
Contributor: Dick Sanford, EVP and Head of Specialty Casualty, PartnerRe U.S.; David Durbin, SVP and Head of R&D and Risk Modeling, PartnerRe U.S.; Wayne Hommes, EVP and Risk and Capital Management, PartnerRe U.S.; Tom Smith, SVP, and Head of Actuarial Pricing, PartnerRe U.S.
Higher capital costs, low interest rates, the looming threat of inflation and the potential rolling back of U.S. tort reforms can be individually problematic for long-tailed casualty lines of business. Collectively their occurrence can be market changing – and not for the better. Indeed, the potential confluence of these factors looks like they’re building up into a potential re/insurance version of “the perfect storm”.