General Insurance

Catastrophe modelling / physical risk

The importance of effective measurement, communication and understanding of risk of natural disasters

In the media and the general community, it has become common practice to classify natural disasters as a ‘one-in-X-year’ event. This phrase can be misleading if interpreted literally, possibly leading people to think that their risk actually reduced because they have 100 years to wait before the next ‘one-in-100-year’ event. This article aims to clear up the murky waters.

Highlights

A Lemonade amongst lemons?

Founded in 2015, American insurer 'Lemonade' has rapidly reached a market capitalisation of $8.5bn and a price to sales ratio of 71.63. This compares to a price to sales ratio of 2.06 for Berkshire Hathaway, the largest global insurer by market capitalisation as at 2 February 2021. Joseph Hoang-Luu, General Insurance Editor of Actuaries Digital, analyses Lemonade's growth and presence in the insurance space.