Property Casualty 360 recently posted noting the tough reality that insurance buyers who want extensive contingent business interruption coverage can still get it, but only at a price. And, they are having to provide more detailed information than ever on their supply network’s potential exposures.
As I have often said, information is king. And it’s never been more true than today.
Property insurance buyers face a myriad of rising demands for information on their risks. Carriers are concerned about “unmodeled” risks and unknown exposures on complex property insurance programs.
As I mentioned to Property Casualty 360 article, insurer ratings agencies have grown more leery of insurers’ solvency as a function of their accumulation of risk from a single event. Given the previously unimaginable losses sustained in Japan and Thailand last year, insurers are also concerned about unmodeled accumulation of risks.
Property policyholders feeling the least rate pressure are those with good loss experience, limited or no catastrophe exposure, and significant data about their Business Interruption and CBI exposures.
Mid-size companies face the same rate environment as their large brethren—but a single carrier, not multiple insurers, typically would write their coverage. That means, unlike bigger companies, smaller buyers do not have an accumulation of CBI sub-limits from multiple insurers to tap.
Here is the full article, Huge BI Losses Spur New “Information Age”