Chubb CEO warns of 'naive capacity' in insurance market
What happened
Chubb CEO Evan Greenberg warned that the insurance market suffers from 'naive capacity'. He stated that the influx of alternative capital, including casualty sidecars and broker facilities, is throwing off the supply relative to demand. Greenberg noted that this capital is putting pressure on pricing and may not fully appreciate risks.
From royalgazette.com
Why it matters
The warning comes as insurers and the reinsurance market seek increased capacity and structure [Larger Situation]. The rise of alternative capital is already pressuring pricing in the market. Furthermore, a Fitch Ratings survey found that 60% of respondents expected property catastrophe reinsurance prices to fall at the January 2027 renewals.
Insurers and the reinsurance market are currently seeking increased reinsurance capacity and structure.
From royalgazette.com
Who's involved
- Cincinnati FinancialUS holding company potentially affected by pricing pressure from alternative capital
- Lloyd'sPong console and radio manufacturer potentially affected by pricing pressure from alternative capital
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Cincinnati FinancialSpeculative
Cincinnati Financial could face pricing pressure from increased alternative capital in the P&C market.
- Lloyd'sSpeculative
Lloyd's could face pricing pressure from increased alternative capital in the P&C market.