Property/casualty losses from Ukraine-Russia conflict could hit $15B: Willis
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Property/casualty insurers could see close to $15 billion in losses from the Ukraine-Russia conflict, according to a report issued Thursday by Willis Towers Watson PLC.
However, the industry is “more than able” to withstand the impact of the crisis, Willis said in its Insurance Marketplace Realities 2022 Spring Update report.
“By several key measures, the insurance industry is in a better position than ever. Policyholder surplus has surpassed a rather astonishing one trillion dollars. Net income is at unprecedented levels,” Jon Drummond, head of broking, North America, wrote in the report.
Return on equity for insurers is also up significantly, Mr. Drummond said.
Meanwhile, commercial insurance buyers can expect continuing price increases, with rates going up in most lines, even as the hard market gradually loosens its grip, Willis said.
Cyber rates continue to spike higher and will see increases of 100% to 200%, up from the 50% to 150% increases Willis predicted last fall.
Beyond cyber, conditions are slowly improving for commercial insurance buyers in North America, with a fair number seeing flat or single-digit increases, Willis said.
Overall, buyers are predicted to face increases in 26 of 33 lines of coverage, though eight of those lines put the low end of their rate prediction at flat increases. And in half of the 26 lines, rate increases are forecast to be smaller than they were in the fall edition of the report.
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