/ Updated / 13 min read
Casualty underwriting team - Global RE Underwriting
Key takeaways
- A small number of large awards can reshape the expected loss cost of a whole liability book.
- Loss triangles alone rarely explain severity, so submissions need a claims narrative.
- Clear exclusions, limits discipline and claims escalation procedures all support capacity.
Severity is a portfolio issue
A small number of large awards can reshape the expected loss cost of an entire liability book. The effect is most visible where policy limits, attachment points, and jurisdictional exposure have not changed with the claims environment.
Global RE reviews verdict trends alongside cedant claims files to understand whether recent severity is isolated, emerging, or already embedded in pricing.
The submission needs a claims narrative
Loss triangles alone rarely explain why severity changed. Strong submissions describe venue shifts, plaintiff strategy, defence posture, settlement authority, and any changes in underwriting selection.
Where the narrative is credible, a reinsurer can distinguish adverse development from a portfolio that has already been remediated.
What supports capacity
Clear exclusions, disciplined limits deployment, subcontractor controls, and claims escalation procedures all support a better view of liability risk.
Attachment levels should reflect the time it takes for severity trends to emerge, not only the loss experience visible at renewal.
Frequently asked questions
- What is social inflation in insurance?
- Social inflation describes liability claims costs rising faster than general inflation, driven by factors such as larger jury awards, litigation funding and changing attitudes to corporate responsibility.
- What should a casualty reinsurance submission include?
- Loss triangles plus a claims narrative covering venue shifts, plaintiff strategy, defence posture, settlement authority and any changes in underwriting selection.
