Chubb CEO Evan Greenberg anticipates strong premium growth in P&C
- January 25, 2024
- Posted by: Web workers
- Category: Finance
Evan Greenberg, CEO at Chubb, expresses confidence in the company’s ability to capitalise on favourable commercial P&C underwriting conditions globally, anticipating strong premium growth.
In his 2023 letter to shareholders, Greenberg highlights the growth potential in property insurance, particularly due to favourable risk-reward underwriting conditions worldwide.
He states, “With the growing impact of climate change, its related costs and volatility; reinsurers charging appropriately for risk and, in large part, passing all but the CAT tail risk back to primary companies; and the cost of money no longer zero, thus keeping alternative capital honest, favourable property insurance underwriting conditions in most areas of the world should endure.”
Additionally, Greenberg highlights the company’s increased exposure to property and catastrophe risks, driven by attractive pricing in this sector.
Regarding commercial lines, Greenberg acknowledges favourable casualty conditions but stresses the importance of selective underwriting based on client type, class, and territory. He emphasises Chubb’s proactive approach to adjusting pricing and terms in response to evolving market dynamics.
However, Greenberg warns against underpriced areas, such as directors and officers (D&O) and employment practices liability insurance (EPLI).
He observes, “Frequency of securities class actions is rising at both the federal and state levels, and severity is increasing. EPLI awards are growing in size.”
Greenberg adds, “As usual, the naive or ignorant capital and underwriters chasing this business at inadequate terms will get burned, and then pricing and terms will correct. At that time, clients and brokers will complain about inflated D&O prices, but they are happy to take advantage of soft pricing while it lasts.”
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