In this article from IN magazine, Ariah Tough, Vice President, Strategic Advisory, describes how various circumstances can affect insurance companies differently, based on size, region and line of business focus. These scenarios were studied in Scenario Testing Our Mutual Future, a report issued by Guy Carpenter’s Regional and Mutual Company Segment, in partnership with the National Association of Mutual Insurance Companies (NAMIC).
The length of time it takes for insurers to recover from challenging scenarios varies, but examining potential impacts can help companies better understand the timelines they might face.
For example, personal lines companies have the most exposure to the Weather scenario, because of increased weather losses. Stagflation has a larger impact on smaller carriers that write less than USD 20 million in premium. Under a Financial crises scenario, insurers that write business nationally face the longest recovery timeline.
Bouncing Back from a Bad Year
Please note: You must be a NAMIC member and registered user of NAMIC.org to gain access to the digital version of IN magazine. If you are not a registered user, you can create your account here. For registered NAMIC.org users, this link will take them directly to the article in the digital magazine.