RVS 2024 recap: Casualty

Growing challenges in casualty lines, emerging geopolitical risks and rising natural catastrophe losses in Europe are three of the main concerns identified by Howden in a report titled “Beyond the horizon: shaping the future of risk”, published on September 5, which underscores the imperative for industry collaboration in developing innovative solutions in response to rapidly changing landscapes.

“The landscape of risk is changing at an unprecedented pace, and so too must our industry evolve alongside it,” said Massimo Reina, chief executive officer, Howden Re, International. “We are committed to championing the development of innovative solutions and believe that collaboration across the industry is essential.”

Commenting on casualty business, the report flagged several challenges particularly in relation to growing liabilities associated with persistent pollutants such as per- and polyfluoroalkyl substances (PFAs), and the evolving risks in the motor market driven by the adoption of autonomous vehicles.

In terms of geopolitical risks, the report identifies a broader array of risks, including the rise in strike, riot and civil commotion (SRCC) events, as well as political violence (PV). These threats are becoming more frequent and severe, and although a global issue, the risks are particularly heightened in regions with increased political instability.

David Flandro, Head of Industry Analysis and Strategic Advisory at Howden Re, underscored the urgency of addressing these challenges, saying: “The risks we are encountering today are more interconnected and severe than ever before, requiring new ways of approaching risk management.

“Bespoke solutions are needed, tailored to the unique challenges faced by different regions and lines of business worldwide.”