Pricing is a way for insurers to try to change behaviour, says Hiscox Group chief executive Aki Hussain (pictured).

In an interview with the Financial Times, Hussein noted that insurance companies are seeking to get their message across, particularly to those in power who can reduce construction risks, through price adjustments.

“If you’re going to build on a floodplain, it can be difficult to get flood insurance… The only way we can really signal that — we can lobby, we can have conversations — but the most obvious signal ultimately is through pricing,” he told the publication.

The Financial Times noted that in the United States, where insurance affordability has been an issue, Hussein’s camp is a major natural disaster insurer and wants to see better risk management through policymaking.

“Ultimately, what you’re trying to do with pricing is signal a change in behavior,” the CEO added.

“We believe these risks are insurable and reinsurable, but they are evolving. Climate change is having a critical impact in many different ways.”

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Hussein’s comments come after Hiscox’s interim results were announced earlier this month.

The specialty insurance company reported a 7.1% increase in pre-tax profits to $283.5 million in the six months ended June 30.

At the time, Hussein said: “Our business has built on the momentum we have gained since 2023 and delivered strong earnings and growth in the first half. We are focused on deploying capital to drive profitable growth and investing in underwriting capabilities and technology to enhance our competitive advantage.

“This resulted in a strong and growing underwriting result of $241 million, despite a more active loss environment, and positions us well for high-quality growth throughout the insurance cycle.”

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