Peter Townsend sees the "T" code statistics as the micro problem facing the hull market, with a further macro challenge coming from the recent run of very costly hurricanes and other natural catastrophes where the bill could be as much as $100bn.
According to Townsend, underwriters are pricing single risks — the premium for one fleet — on the basis that they are non-correlating, so losses are likely to be one-offs rather than events producing large numbers of claims.
