FM Global COO Bret Ahnell Explores Property Insurance Challenges and Opportunities

During the RISKWORLD conference, Bret Ahnell, Chief Operating Officer of FM Global, provided insights into the evolving landscape of the property insurance industry. Amidst an unusually prolonged six-year hard market, influenced by factors such as COVID-19 and changing work dynamics, the property insurance sector is navigating through significant challenges and transformations.

Ahnell highlighted the increasing impact of climate change on insurance, with severe weather events like convective storms prompting shifts in reinsurance practices and causing capacity constraints in the industry. These challenges are steering the sector towards leveraging advanced technologies like AI to enhance operational efficiencies and client relationships. FM Global itself mandates a return to office for most roles, facilitating more effective collaboration and business operations.

Addressing the pivotal role of renewable energy, Ahnell discussed FM Global’s commitment to supporting this sector as both an imperative and a challenge. The insurer is actively expanding its coverage offerings to cater to the unique risks associated with renewable energy projects, such as hail damage to solar panels and fire risks in battery storage. This move is part of a broader effort to mitigate the impacts of climate change and support sustainable energy solutions.

Furthermore, the conversation touched on the changing demographics within the industry, with a generational shift introducing new dynamics in workforce management and mentorship. Ahnell expressed concerns over potential coverage gaps and the industry’s readiness to tackle catastrophic events, like large-scale tornadoes, which could have devastating impacts given FM Global’s high coverage limits.

Lastly, Ahnell reflected on the social significance of the insurance industry, emphasizing its role in maintaining societal stability and resilience through comprehensive risk management and recovery support. He concluded with an acknowledgment of the critical contributions of FM Global’s clients in risk improvement, which have significantly influenced the company’s performance and ability to offer substantial membership credits back to its policyholders.