XL Group's chief executive says Superstorm Sandy will not be a capital event for the insurance industry, but he does think it will change the industry's perception of risk.
“When this is all said and done, I don't think any of us are going to feel that people were as well insured as they could have been,” says CEO Michael S. McGavick, speaking Nov. 5 during a conference call to discuss the insurer's third-quarter earnings. He adds that several elected officials have admitted the region was not as prepared for the massive storm as it could have been either.
“I believe the underwriting community will have to rethink with care [about] what they should charge for risks in a region with such a complex concentration of values exposed to such storms,” he says.
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