Economics

In the aftermath of 2008’s Great Financial Crisis, interest rates were cut to unprecedented low and negative levels. At the time, many questioned whether this would inevitably lead to high inflation in the short or medium term. However, to the surprise of many economists, the level and volatility of inflation rates seemed to defy gravity for over a decade. As a result, investors, analysts, and other market participants scaled back the magnitude and frequency of low probability risk events in their models. This was a mistake.

The marine insurance industry faces myriad challenges including geopolitical tensions, uncertain macroeconomic conditions, ESG issues and a shortage of talent. Inland marine insurers are being further impacted by increased reinsurance costs and severe weather conditions, and as a result are increasingly turning to technology to improve the underwriting process.

Amidst recent turmoil in the banking sector that has raised concerns for directors and officers insurers, Tim Braun, Executive Vice President, and Calum McPherson, Head of Financial & Transactional Risk, both at AXIS, share their insights into the global financial lines sector.

We present the key findings from Swiss Re's latest report on the economic and insurance-focused outlook for the Latin American region