Jun 16
The price of risk is falling in a more dangerous world
➤ The insurance industry is experiencing falling prices and increased competition due to a surge in capital from alternative asset managers, despite a rise in global risks like natural disasters and cyber threats. ➤ Executives are concerned that this influx of capital is leading to underpricing of risk, potentially creating a bubble and setting the stage for a future insurance crisis. ➤ The article questions whether the traditional insurance boom-and-bust cycle can be broken by this new wave of alternative capital, or if a major catastrophe will inevitably reassert the true price of risk.