MultiStrat CEO says casualty reinsurance steady
Casualty reinsurance companies remain profitable despite pressure from lawsuits and competition from alternative investment funds. Bob Forness leads MultiStrat in Bermuda and said insurers must combine careful risk selection with strong legal teams to counter rising claim costs. Premium rates climbed as much as 50 percent in some business lines over recent years and carriers have not surrendered those gains.
Commercial auto and professional liability policies still command double-digit price increases from reinsurers. Most reserve corrections happened in 2023 and 2024 as firms adjusted their books for pandemic disruptions. Casualty insurance-linked securities attract investor capital but require expertise because liabilities span many years. Three types of firms entered the market through sidecars, proprietary vehicles and independent collateralized reinsurers that work with multiple clients.
