Global Insurer Profitability Grows, Even As CAT Losses Soar

Although 2017 — fraught with catastrophic incidents — was one of the costliest years on record for the global insurance industry, Aon’s new report has found that insurers’ capacity to meet their losses continues to grow. According to the brokerage giant, global insurer capital grew to US$4.5 trillion in the first half of 2017. This increase in capacity comes as 2017 posted its second highest record for economic losses, at US$353 billion (adjusted for inflation). “The bad news for insurers is clear: 2017 was one of the worst years for insured losses on record,” commented Aon Canada executive vice-president and chief broking officer Rohan Dixon. “The good news, though, is that insurers’ capital positions remain strong, meaning that the industry’s capacity to meet insured losses and operate profitably is not only stable, but growing.”