Carrie Byler, Managing Director and Head of U.S. General Casualty at Howden Re, spoke with Intelligent Insurer about the evolving U.S. casualty reinsurance market ahead of the 1.1 renewals.
Byler addressed several key trends impacting the sector, including increasing rates, lower coverage limits, and the growing role of data and artificial intelligence in underwriting and claims processes. She stated, “AI should be used for ‘augmented’ decision making, not ‘automatic’ decision making.”
Social inflation and litigation funding were highlighted as significant challenges for the industry. Byler pointed out that U.S. households are paying an average annual $4,200 “tort tax” due to these pressures.
She also discussed the increasing presence of third-party capital in the market, noting that casualty insurance-linked securities (ILS) are becoming more prominent. According to Byler, this trend offers both cedants and investors a chance to diversify capital sources and collaborate on shaping the future of the marketplace.
Looking forward to the upcoming renewal season, Byler emphasized that cedants who can clearly communicate their strategy, maintain high-quality data, and practice disciplined claims management will be better positioned to secure capacity on favorable terms.