In Conversation with Risk & Insurance: Swiss Re’s Katie McGrath on the Vital Importance of Resilience
During RISKWORLD 2023, Dan Reynolds, editor in chief of Risk & Insurance, caught up with Katie McGrath, CEO, North America, Swiss Re Corporate Solutions.
The importance of resilience is a common theme in commercial insurance these days. McGrath spoke about the increasing impact catastrophic weather events are having on insureds and the need for insurance carriers and their partners to be even more transparent in sharing information that could make properties and businesses more resilient in the face of ever more expensive loss scenarios.
Despite the challenges facing businesses, McGrath expressed confidence that the insurance industry is getting a better handle on capturing the data needed to predict and prevent large losses.
She added that not only is predicting and preventing losses becoming more and more achievable but that there seems to be a growing opportunity for information-sharing across all sectors, not only of the insurance and risk management field but of the economy in general.
The conversation also touched on the hard market that is currently impacting many insurance lines. Premium prices are rising and capacity in many cases is shrinking. There is also a growing protection gap, where companies are not able to purchase enough insurance to cover pressing losses.
Using technology to better target the source and scope of the loss is allowing Swiss Re and others to employ approaches such as parametric insurance, which ties coverage to a specific metric, such as wind speed, that is reported by third parties, McGrath said.
She thinks that will give insureds a much better chance to remain resilient in the face of current challenges.