Urs Baertschi, CEO of Property & Casualty Reinsurance at Swiss Re, recently shared his perspective on the challenges and opportunities facing the insurance industry in 2025.
Despite a year marked by extreme weather, market volatility, and geopolitical uncertainty, he emphasised that insurance professionals have navigated such turbulence before and are well positioned to provide stability.
Baertschi underscored the importance of partnerships between insurers and reinsurers, describing them as “the bedrock of societal stability.”
According to him, these relationships are strongest when grounded in trust, informed by shared data, and sustained through constructive dialogue. He highlighted the role of collaboration in mitigating losses even before disasters occur, stressing that collective expertise can help prevent damage and enhance resilience.
-->
Addressing common industry challenges, Baertschi pointed to macroeconomic uncertainty and slowing global growth as factors that could limit insurance premium expansion, particularly in sectors like marine, trade credit, and construction.
Simultaneously, he observed that insured natural catastrophe losses continue to rise, driven by urbanisation, increased asset values, and extreme weather. He noted that “insured losses are increasing by 5–7% annually,” and that even without a single major event, total losses in a given year can exceed USD 100 billion, with potential peaks reaching USD 200–300 billion according to Swiss Re Institute analysis.
To confront these challenges, Baertschi explained that Swiss Re focuses on listening to clients, providing the capacity needed to drive growth, and supporting underwriting through advanced analytics and modelling.
He highlighted tools such as Risk Data Solutions and the CatNet Suite, which enable insurers to integrate real-time risk scoring and exposure monitoring into their decision-making. These solutions, he explained, help transform fragmented data into actionable insights, allowing insurers to respond proactively as risks emerge.
Baertschi also described how the industry’s role is evolving from purely offering protection to emphasising prevention and preparedness. He noted that “every USD 1 spent on hazard mitigation saves USD 6 in future disaster recovery costs,” citing New Orleans’ investments in flood defences and smarter land use as evidence of the long-term benefits of proactive measures.
He referenced the UK’s Flood Re program as another example of collaboration between government and insurers, enabling homeowners to access affordable insurance while investing in adaptive measures that reduce vulnerability to future storms.
Recognising that more remains to be done, Baertschi emphasised the need for transparent data sharing and forward-thinking partnerships.
He cited examples such as Italy’s mandatory natural catastrophe insurance for businesses and parametric insurance schemes, including the city-wide flood coverage in Fremont, California, and Morocco’s 2023 earthquake relief, where rapid payouts supported swift recovery.
“This is exactly how I see insurance – an enabler of progress and a protector of societies,” Baertschi said, highlighting the sector’s capacity to strengthen resilience and provide confidence to innovators and communities alike.
Looking ahead to the conference season, Baertschi expressed his anticipation for ongoing dialogue with clients and brokers about how insurers and reinsurers can expand their impact: “More for people who need protection, more for companies who need stability, and more for the public sector to better prepare and mitigate risk.”
About the Author
