High Frequency, Low Severity U.S. Weather Events Chipping Away At Insurers

 Tuesday, September 28, 2010

 National Underwriter Property & Casualty

The increasing frequency of low severity, rare weather events is impacting underwriting results for property and casualty insurers in the U.S., and the phenomenon is credit negative for insurers, Moody's said in its Weekly Credit Report. Moody's noted there has not been a severe natural catastrophe in the U.S. in 2009 and so far in 2010. "However," Moody's added, "the underwriting margins of many industry players, particularly those with property coverage concentrations, have suffered significant aggregate losses because of a sharp upswing in the frequency of low-severity perils including tornados, winter storms, hail and covered floods."