Wolfram-Ferdinand Schultz on USA casualty exposure for non-USA companies

Wolfram-Ferdinand Schultz, Head of Casualty Treaty for Continental Europe, Howden Re explores the strategic implications, legal nuances, and opportunities for innovation within this complex environment.

Why is U.S. casualty exposure such an important topic for global businesses today?

Trade between U.S. and non-U.S. companies is a central pillar of the global economy. As these relationships evolve, so too do the associated risks, particularly those shaped by the U.S. liability and legal environment.

It is important to bear in mind as companies enter the market or even more broadly, that legal systems are in constant change and therefore it is very important to remain abreast of the latest developments.

However, rather than viewing these exposures as a barrier, they should be seen as opportunities for critical consideration in any company’s global strategy. Understanding them enables more effective risk management and helps avoid unexpected disruption down the line.

What are the areas covered within your whitepaper?

There are several aspects that influence the development of USA exposure, such as:

• General inflation, especially in healthcare and legal services, which increases the cost of claims and operational burdens on insurers.
• Social inflation, referring to broader interpretations of liability, more frequent litigation, and higher jury awards, often driven by changing societal attitudes and legal culture.
• High-value or “nuclear” verdicts, which, while still relatively rare, can significantly impact risk assessment and capital planning.
• Societal Change, which is an aspect not to be underestimated.

For global companies, these factors increase the importance of having insurance and reinsurance programs that are tailored to U.S. exposures, not just extensions of home-market structures.

How can companies mitigate these risks and optimise their coverage?

This is where thoughtful planning and analytics come into play. At Howden Re, we focus on building a bridge between direct portfolio steering and reinsurance strategy. That means designing structures that align with a client’s operational footprint, risk appetite, and long-term growth plans. Our approach is collaborative and tailored, ensuring we respond to specific needs rather than applying generic solutions.

We're always open to discussing possible risk mitigation and coverage optimisation strategies, especially where we can add value through analytics, industry insight, and deep market access.

Mitigation isn’t just about limiting downside. Rather, it’s about optimising how risk is transferred, priced, and retained. We use our own analytics tools to help clients anticipate where exposures may shift and to design reinsurance programs that remain resilient in a changing environment.

Is this a time of challenge or opportunity for casualty (re)insurance innovation?

I believe it's a time of opportunity. The current market is relatively stable, and we’re seeing healthy participation from both traditional and alternative capital providers. That gives us a platform to design new solutions, ones that offer meaningful protection for clients and are economically viable for reinsurers.

Whether through structure, data, or dialogue, we’re in a strong position to reframe how casualty risk, particularly U.S. exposure, is approached by international businesses.