In this AAIS Market Report, Chair, President and CEO of Greater New York Mutual Elizabeth Heck discusses  challenges to the insurance industry in the U.S. and New York.

Ms. Heck identified several challenges facing the US insurance market today, including inflation and supply chain disruptions. In the past year alone, numerous industries and markets, including insurance, have seen loss costs increase due to inflation and supply chain issues.

Ms. Heck also sees an increase in frequency and severity of property catastrophe events as concerning, particularly since 2022 is predicted to be an “above average year” regarding CAT events. She notes that non-modeled CAT events are another issue, with events such as the California Wildfires becoming more frequent. These exposures pose a challenge to insurers because they are not predicted by current models, making them difficult for insurers to quantify.

Lastly, social inflation is a continuing challenge to the U.S. insurance market, due to shifting moods in the country, nuclear verdicts, and regulations encouraging bad behavior.

Ms. Heck will be honored with a Distinguished Service Award at the upcoming New York Insurance Association (NYIA) Conference. To hear more from Ms. Heck’s Market Report, including how Greater New York Mutual is responding to the market, NYIA efforts to support New York insurers, and a look ahead to the NYIA 2022 Annual Conference, click on the video link.