CUO talks about how bad weather has affected the market.

It has been hard on the insurance industry because there are more and more big storms and floods. However, Orchid Insurance, one of IBA's 5-Star Wholesale Brokers and MGAs for 2022, has been able to weather the storm very well, and is one of the best.

He is the chief underwriting officer for Orchid. Ross Bowie told IBTV recently that terrible storms have had a big impact on the market and how Orchid has responded.

Bowie said that many insurance companies may have thought they were safe because of a lack of major storms between 2010 and 2019.

This is what Bowie said: "During the decade from 2000 to 2009, we had one of the highest rates, almost 24 events in the US." Between 2010 and 2019, there were only nine storms that hit the US. This made people wonder, "Do storms not happen every year? Is that true?"

Orchid's plan, on the other hand, was to make its portfolio more resilient.

"We build portfolios to be strong even if we have a lot of bad things happen," he said. There are usually one to two landfalling events every year, based on the history of the area. People think about profitability and prices all the time when they do this.

Because we were still pricing at a much higher frequency than what he thought the market was expecting, he said, that didn't work out well for us from 2011 to 2017. Now that we're back to what I would say is the "average frequency," you can start to see our pricing model work much better.

Bowie said that Orchid was able to make money even in years when there were a lot of disasters.

A lot of companies came into the market in 2011 and 2012, and their whole business model was based on the idea that they could make a lot of money even when there were no events. The way we do business has never been like that. A way we run our company is to say, "Hey, we're going to build up a portfolio that, no matter what happens, we'll still try to stay in our price range of an 85 percent combined ratio and be able to pick out risks.

You may ready the Original article at https://www.insurancebusinessmag.com/us/news/catastrophe/weathering-the-storm--cuo-on-how-catastrophic-weather-has-impacted-the-market-403743.aspx