Mark Weatherhead, Head of Model Development - International
2016 marked the 60th year of the Monte Carlo Rendez-Vous. Since the first event in 1957 the insurance world has changed significantly, with economic and insured losses from natural catastrophes such as floods and hurricanes increasing dramatically.
This trend has in turn increased demand for improved measurability and risk modelling to allow carriers to better underwrite and manage exposures and to create a more reliable view of a company’s total risk exposure.
On a global basis, the key drivers of the increase in insured losses have been population growth, urbanization and increased insurance penetration. Other contributing factors, including climate change, may also have been an influence.
In Europe, population growth has been more modest than in other parts of the world, with the continent’s population increasing by 27 percent since 1957 from 580 million to 740 million. In comparison, the total world population increased by 161 percent from 2.8 billion to 7.4 billion during the same period.
But although its numbers have grown by less than the rest of the world, Europe has experienced a steady rise in urbanization that has led to increased concentration of insured risk.