NU Online News Service, June 6, 2:45 p.m. EDT

NEW YORK—"Geographic diversity is not a hedge against loss," a Chartis executive says—a lesson amplified for the industry after it suffered more than $100 billion in losses from events in 2011.

Sanjay Godhwani, property product-line executive for Chartis, speaking at Advisen's Property Insights Conference here yesterday, said, "Mispricing exposure offsets diversification," and the industry had limited or poor data for many of the events in 2011 because the events were not modeled. Therefore, the industry had no secondary viewpoint of risk as it does with hurricanes or earthquakes.

Recommended For You

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.