Wolfram-Ferdinand Schultz, Head of Casualty Treaty for Continental Europe at Howden Re, has provided insights into the complexities of U.S. casualty exposure for non-U.S. companies. Schultz discusses the strategic implications, legal nuances, and opportunities for innovation within this environment.
Schultz highlights the importance of understanding U.S. casualty exposure due to its impact on global trade relationships. He states, "Trade between U.S. and non-U.S. companies is a central pillar of the global economy." He emphasizes that evolving legal systems require businesses to stay informed about developments in liability and risk management.
The whitepaper by Schultz outlines several factors affecting U.S. exposure, including general inflation in healthcare and legal services, social inflation with broader interpretations of liability, and high-value verdicts known as "nuclear" verdicts. These factors necessitate tailored insurance and reinsurance programs for global companies operating in the U.S.
Schultz advises that thoughtful planning and analytics are crucial in mitigating risks and optimizing coverage. "At Howden Re, we focus on building a bridge between direct portfolio steering and reinsurance strategy," he explains. The goal is to design structures that align with clients' operational footprints and long-term growth plans.
Despite challenges, Schultz views this period as an opportunity for casualty (re)insurance innovation. He notes the market's stability and participation from traditional and alternative capital providers as positive indicators for developing new solutions that offer meaningful protection while being economically viable.
Overall, Schultz believes that this environment allows international businesses to rethink how they approach casualty risk related to U.S. exposure through structure, data, or dialogue.