Industry in 'crisis' faces 'greatest challenges of our time'... and 'Love Island'

We're looking at "the greatest challenges of our time," Lloyd's Chairman Bruce Carnegie-Brown warned this week at Marsh McLennan's Rising Professionals' forum. Those challenges: climate change, cyber/tech risks, geopolitics and political violence and financial risk, all troubling topics that, of course, have been covered extensively here in the Paragon Rider. “Developing good judgment is about creating a disciplined framework against which to evaluate an opportunity or a challenge, remembering that, successfully navigated, your biggest challenges will become your biggest opportunities," he said.

Speaking of such challenges... this hurricane season is shaping up to be a doozy. In just a few short (yet volatile) years, natural catastrophe premiums, stoked by mounting weather risks, are expected to surge 50%, or as high as $250 billion, according to a new report from Howden and Boston Consulting Group (BCG). "Insurance is the financial bedrock needed to de-risk investments and attract the additional capital necessary to mobilise the climate transition," Howden's Rowan Douglas CBE explained in a press release.

Preparing for such imminent weather-related catastrophes can pay off in a big way. While investing in resiliency won't prevent losses – the U.S. averages some 10 disasters a year costing more than $1 billion each – they can significantly reduce them. In fact, a new study from Allstate and the U.S. Chamber of Commerce revealed that communities save about $13 in damages for every dollar spent on getting prepared.

For some of the biggest players in the homeowners insurance business, loss ratios are dropping faster than claims in a hailstorm. S&P Global Market Intelligence revealed a 14.7 point improvement to 56.5 for the industry overall — and improvements more than twice as large for insurers Allstate and Nationwide . Take a closer look at the numbers.

Meanwhile, the actual homeowners are feeling the pinch as property insurance premiums soar, prompting cutbacks in dining out, travel, groceries and even medications. According to a recent Claim Guide survey of 1,500 homeowners, premiums have spiked by 34% in the last five years, with 61% reporting higher rates in the past year alone. More than one in ten homeowners have seen their premiums double or more. "Crisis"... ?

Obviously, if you're looking for something to stress out about, you'll find it. But how about a bit of optimism from AM Best, which is celebrating its 125th anniversary this year: The ratings agency has upgraded the reinsurance sector outlook to positive for the first time ever, citing strong profit potential. To be clear, the analysts have only been giving outlooks on reinsurance since 2006, but that's still nearly two decades without a positive outlook.

Lastly, and arguably most importantly ??, we welcome the glorious intersection of insurance and "Love Island." Yes, Trey O Norman, a broker for One Call Commercial who describes himself as "someone who goes after what they want," just joined the ITV show. The self-proclaimed "geek and academic" isn't the first broker to wade into the reality TV pool this year. Andrew Jenkins of PG Insurance , finished fourth on the BBC's The Traitors show.