SHUTTERSTOCK / EVERETT COLLECTION
Governments play the role of reinsurer of last resort in many instances, whether it be through a formalised risk-transfer system or simply because they have no choice. But where such entities begin to stray out of their home markets, things can get interesting, as Intelligent Insurer discovers.
The increasingly ambitious business plans of some state-backed or formerly state-backed reinsurers represent an evolving and increasingly interesting dynamic in the world of reinsurance.
Often originally established by governments to either provide coverage that cannot be obtained in the private markets, or because a government wants to prevent business flowing elsewhere, they can develop into entities very different from their founders’ original intentions and business plan.
It is, in fact, very difficult to generalise about state-backed reinsurers—or even define them for that matter. At one end of the spectrum sits the UK government-managed and backed Pool Re, which represents the insurer of last resort for terrorism risk in the UK (see story on page 40). It has a specific purpose and has not deviated from this.
Qatar Re, re/insurance, GWP, CCR,