Direct non-life insurers in advanced markets have experienced a deceleration in the release of prior-year loss reserves, prompting concerns about adequacy due to recent shocks, leading to an uptick in the share of incurred-but-not-reported (IBNR) claims, according to a Swiss Re Institute report.
The global insurance industry had made favourable progress over the past decade, but reserve releases have been tapering off. The COVID-19 pandemic, the war in Ukraine, elevated inflation, and natural catastrophe losses have pushed up claims, straining the existing reserves.
