AM Best Looks at the Emerging Risks of Catastrophes

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FOR IMMEDIATE RELEASE

OLDWICK - JUNE 04, 2019 10:59 AM (EDT)
Best’s Review focuses on catastrophes in conjunction with the start of hurricane season this month. While these perennial storms are a constant threat for insurers, the June issue looks at other types of catastrophes, both natural and man-made.

• “Going Dark” examines how the 2017 NotPetya ransomware attack paralyzed businesses and resulted in an estimated insured loss of $3 billion, revealing cyber as an emerging catastrophic risk.


• “Stumbling Blocks” details the obstacles holding back the development of a cyber insurance-linked securities market, such as limited modeling, lack of loss history and its potential long tail.


• “Waiting to Erupt” outlines the new ways insurers plan to assess and address the overlooked threat of volcano eruptions, including the development of parametric products and an exposure-based probabilistic volcano model.

Also in the June issue, “Storm Clouds on the Horizon” looks at the forecast of a recession in 2020 or 2021, and how asset managers are de-risking their portfolios. Regarding the life industry, “Reaching the Uninsurables” reports how insurers are targeting those with chronic illnesses such as diabetes, searching for growth in an underserved market.

Full access to the complete content of Best’s Review is available at http://www.bestreview.com .

AM Best is a trusted source of insurance market insight and data, and the only global credit rating agency with a unique focus on the insurance industry. Best’s Credit Ratings are a recognized indicator of insurer financial strength and creditworthiness.