With both climate-related risks and social inflation driving increasing losses and generating headlines, it’s important to understand both the drivers and outlook for these impacts on the insurance industry. First, climate related perils have caused significant events in recent years such as wildfires, hurricanes, derechos, and flooding. The session will explore the climate risk landscape and discuss how insurers, communities, and regulators are responding.
Second, the session will turn to social inflation and the rising impact of litigation costs and claim payouts. The presentation will discuss the proliferation of class-action lawsuits, outsized verdicts, and litigation funding, while exploring the close connection between social and economic inflation.
This session will conclude with a discussion of these topics with a forward-looking approach about what the industry and actuarial profession can do in response to these growing risks, as well as questions from the audience.