Insured Losses from European Natural Catastrophes: Is there a trend over time?

Diagnosing the drivers of changing insured losses year on year is an important component of developing a sustainable insurance portfolio. The common assumption is that losses for most perils are increasing year on year. However, there are many factors that could drive the change in losses: economic versus insured losses, impacts of inflation, changes in societal wealth over time, movement toward riskier property locations as well as potential changes in the frequency and severity of European wind and flood events. This presentation will quantify each of the above factors to determine the drivers of changes in insured losses over time.