Record-breaking wealth, ketchup coverage and the most aggressive forecast ever

Let's start off with a fun fact: U.S. household wealth rose to a record of $156.2 trillion at the end of 2023 thanks to a surging stock market that managed to more than offset a drop in property market values, the Federal Reserve said.

It's not just consumers who are apparently feeling a bit flush. The year ahead will see clear uptick in acquisition opportunities amid fierce competition, according to Deloitte's Insurance M&A Outlook. Specific to property and casualty, which was bogged down by social inflation and third-party litigation, the consulting giant said it expects the broader market to pull away from some risk classes, opening the door for specialty carriers to expand their footprint with innovative solutions.

Optimism is indeed wafting through boardrooms lately, according to KBW's take on the 2024 Association of Insurance and Financial Analysts conference. The report, as cited by Reinsurance News , found that management teams across virtually all P&C sub-sectors are appropriately bullish about their earnings outlook amid ongoing risks such as geopolitical conflicts, economic uncertainty, extreme weather events and cybersecurity threats. Wholesale brokerages, they added, are poised for strong growth as elevated submission flows persist.

Now for some less-fun numbers... and this could very well be the most aggressive forecast ever: The European Centre for Medium-Range Weather Forecasts - ECMWF is predicting 17 named storms and nine hurricanes by the end of September. Factors such as the potential shift to La Ni?a conditions and above-average sea surface temperatures suggest heightened storm activity. Gulp.

Demand for parametric insurance has been on the upswing, and that trend won't be going away in 2024, Swiss Re 's Martin Hotz said. “The three main qualities of parametric insurance are speed, flexibility in the use of payouts and transparency," Hotz told Reinsurance News in an interview. "There is no fine print in a parametric policy, which clients appreciate in these uncertain times."

Also on the rise: Tesla Insurance. In fact, Elon Musk's electric-car company is now the top producer for State National Companies (SNC). Tesla ended last year with $497 million in written premiums, which is more than double the figure in 2022, as reported in this story by Coverager? ???.

Cyber insurance won't be leaving the spotlight anytime soon, with AM Best elaborating in a recent report on how the sector has established itself as a focal point of growth and risk. "Cyber insurance is one of the fastest growing lines of business in the P&C industry the past eight years," the analyst explained, adding that it is still seen as having the greatest potential for growth, with direct premiums written estimated to reach a whopping $15 billion by 2025.

Overall, if you are of the view that rates are peaking, well, you're looking at a "false summit," according to Patrick Tiernan, Lloyd's chief of markets, who said that “risk factors remain elevated across the portfolio, and uncertainty has not been becalmed. ”Current pricing dynamics will not change materially in the near term and the market would “continue to support market expansion, driven by existing outperformers and underwriters with a track record of sustained underwriting profitability across all market conditions," he added.

Finally, go ahead squeeze that ketchup bottle with reckless abandon. Heinz got ya covered... in the UAE at least. Yes, ketchup insurance will "turn messy moments into pure joy and convenience," says Passant El-Ghannam , head of marketing at 亨氏 MEA. Compensation includes home cleaning services, laundry assistance, handyman services, and even indulgent spa treatments.