Escalating catastrophes, reinsurance shifts, and valuation challenges are reshaping business resilience. Travelers’ Charlie Verfurth and Kevin Cahill share insights on key property insurance trends shaping strategies today.
White Paper Summary
Risk & Insurance®: What forces are shaping the next wave of property risk?
Charlie Verfurth (CV): Property risks are being shaped by factors that extend well beyond traditional loss drivers. Globally, we’re monitoring shifting supply chains, economic uncertainty and geopolitical events that can impact replacement costs, insurance-to-value ratio and time to rebuild. Our National Property underwriting team works alongside dedicated Risk Control specialists to evaluate changing risks, from larger hurricanes and more frequent wildfires to new technologies being introduced into buildings and personal property.
Most importantly, we take a proactive approach to managing property risk, sharing practical recommendations that strengthen resilience before a loss occurs. We’re focused on helping customers prepare for what’s next, not just react to what’s already happened.
R&I: What factors are driving conversations with risk managers today about property risk?
Kevin Cahill (KC): Currently, our conversations with risk managers are less about insurance as a product and more about managing disruption. A loss creates disruption to people, operations and financial goals. That’s why we spend so much time talking about prevention, mitigation and resilience. Yes, costs are top of mind, but what really moves the needle is how forward-looking a company can be. Taking a preemptive approach to risk mitigation can have a positive impact when a loss occurs, and that’s where we see customers placing more emphasis today.
For instance, diversifying a supply chain or building redundancy can protect production and revenue when disruption occurs.
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The Travelers Companies, Inc. (NYSE: TRV) is a leading provider of property casualty insurance for auto, home and business. A component of the Dow Jones Industrial Average, Travelers has approximately 30,000 employees and generated revenues of approximately $28 billion in 2016. For more information, visit www.travelers.com.
Alice J. Roden started working for Trending Insurance News at the end of 2021. Alice grew up in Salt Lake City, UT. A writer with a vast insurance industry background Alice has help with several of the biggest insurance companies. Before joining Trending Insurance News, Alice briefly worked as a freelance journalist for several radio stations. She covers home, renters and other property insurance stories.