Insurance industry has shown resilience to market events while navigating a heightened operating environment in a world with greater uncertainty and increased inter-connectivity of risks, AM Best analysts Morgane Hillebrandt and Dr. Angela Yeo have remarked at the AM Best's CEE Insurance Market Briefing – Vienna.

While insurers have proven to be effective and adaptable, ERM remains key to manage unknown events. They had to cope with heightened cost of doing business and absorbe unforseen evolutions in the market environment, but in doing that they have maintained strong balance sheets. However, the state of permacrisis persists and thus uncertainty is the is remaining a main factor to consider, the two speakers said.

Addresing the protection gap is and will remain a very important task for the re/insurance industry. In Pensions, the gap is estimated at about USD 1 trillion, while in cyber it amounts to USD 900 billion. Healthcare adds some USD 500 billion to the total, while the Nat Cat deficit of protection is of USD 150 billion. Moreover, in a business as usual scenario, these values are bound to increase.

Climate, cyber, SRCC (strikes, riots, and civil commotions), litigation and the regulatory risk are, in AM Best’s vision, the main threats, especially that both frequency and severity of events as expected to increase.

AM Best's CEE Insurance Market Briefing – Vienna, organized in partnership with XPRIMM, is the first AM Best event fully dedicated to the CEE markets.