Professor Bob Hartwig, clinical associate professor at University of South Carolina, was interviewed for the latest AAIS Pulse: Chicago presentation. He examined current economic conditions and their impact on the insurance market as a whole, but also discussed how those conditions will impact the global and domestic reinsurance markets.

Hartwig shared, "Today the global reinsurance marketplace is under a fair amount of stress. Hurricane Ian is just one of those reasons for the stress, but 2022 comes on the heels of a number of record or near record years of catastrophe losses on a global scale. This is not just isolated to the U.S., but also seen in Europe, for instance, and places like Australia as well."

He also stated that the reinsurance markets are stressed for other reasons, including capacity. Also, primary insurers are stressed with cost of claims rising within this year of inflation, and are seeing inflated claim values. That means after any given event, major or minor catastrophes, you are more likely to penetrate into the reinsurance market, and this is just one dimension of the problem with inflation. There are other dimensions, as well.  

To hear more about what Hartwig says is impacting the reinsurance market, please click the video above.