A Series Of Catastrophic Events: How Would The Industry Cope?

A group of major insurers has held a ‘dry-run’ simulation of catastrophic loss events, which resulted in the highest global insurance losses in history — at approximately US$200 billion — and found that the industry has sufficient liquidity to cope. The scenario, which was designed to test the industry’s resilience, included an unprecedented cyber event that cut the power supply of 93 million people in the US, one of the largest ever stock market declines at 16%, a category five hurricane that swept Miami, and a major reinsurer default with consequent delays in reinsurance payments.