Do investors have good reasons to keep the faith with the industry?

The main thrust is claim indemnity costs rise but as reinsurers cover most of the risk carriers are in a good place. But on the other hand reinsurers are raising fees by 30% or so so carriers are caught between raising premiums or reducing cover ( or both of course).

Just yesterday I read about Kettle.

In the US Nat Manning is CEO of a reinsurance startup- KETTLE that models wildfire risk. He says the industry is suffering because it outsourced its core underwriting capabilities during better, predictable times and is suffering in  these unpredictable times. Reinsurers are raising rates by circa 30% and insurers just have to pay up.

KETTLE has created a better mousetrap. Its models run 696 billion risk assessments refreshed every fortnight to deliver a more accurate house-by-house risk assessment across the USA. The cover might cost three or four times more than older models but is far better than the eye -watering fees charged by rival reinsurers.

Then at Instech London another start-up, safehub, explains how it installs sensors in buildings in earthquake risk locations. 

SAFEHUB- Andy Thompson CEO is providing  organisations with real-time, building-specific earthquake damage information to expedite emergency response and recovery. Through its cloud-based SafeHub platform, business continuity and resilience managers are able to prioritise building assessments and resources while resuming operations as quickly as possible.

Insurers and their supply chains can better help customers.

All in all, seems investors do have reason to keep faith with carriers that avail themselves of data- driven underwriting, FNOL and reinsurance