Natural catastrophe trends are becoming increasingly challenging due to the rising frequency and severity of events such as hurricanes, wildfires, floods and storms. Climate change is contributing to more volatile and extreme weather patterns, leading to larger, less predictable losses. The panel is monitoring the situation as the market continues to evolve and has developed nat cat model clauses in conjunction with the LMA Wordings Committee.

Governments and regulators are increasingly focused on climate resilience. In some regions, there’s growing intervention in pricing and coverage, particularly around natural catastrophes, placing pressure on reinsurers to balance profitability with compliance. These shifts require reinsurers to adapt and maintain a close watch on evolving regional and global regulatory frameworks. The panel maintains close relations with the Lloyd’s US legal and regulatory team to keep up to date with developments in the various states.

The panel keeps track of challenges related to the efficient running of the market. Topics such as sanctions compliance processes and efficient premium processing area have been improved through dialogue with Velonetic. Additionally, the panel has contributed market operations projects, such as the Core Data Record for treaty.