Rajesh Narayan, VP of Product & Underwriting at ValueMomentum

Essentially when you look at insurance it’s personal lines, commercial lines, the specialty EXs and surplus. So you might even see space launches being covered by insurers. So that’s a huge complex set of segments we’re talking about.

In some areas you see inflation risks because of technology in cars today — you have a fender bender, you still have a number of sensors in that and the cost of repair has gone up. So there’s a higher amount of challenge for the insurers to pay out the claims and it impacts their loss ratios.

On the commercial side you might have more hardening of risk because there is a larger market share which is subject to more catastrophic risk and subject to many other different forms of risk than in the past. And so reinsurance has become more difficult for insurers to get or the prices have changed over the past years and that has contributed to a harder market than usual.