Industry Underestimating COVID-19 Biz Interruption Losses: RenRe CEO
During an upbeat earnings call focused on how RenaissanceRe is using $1 billion of capital it raised last year in 2021, the CEO highlighted one negative development for the industry overall inadequate estimates of COVID-19 losses.
“Even as COVID 19 continues to spread, there has been some speculation that it will not prove as impactful for the insurance industry as originally foreseen. I do not believe this to be the case,” said Kevin O’Donnell, RenRe’s president and chief executive officer.
“In many instances, our industry has yet to recognize the losses that will inevitably arise from the pandemic, particularly with respect to business interruption. Likely, this lack of recognition occurred because it made renewals smoother at Jan 1,” O’Donnell continued.