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The many reinsurers that have developed substantial primary operations could be in for a backlash from their cedants, as Intelligent Insurer discovers.
While ‘diversify’ has been the mantra of many large reinsurers in recent years as they seek growth in stagnant markets and enhanced profits outside the elongated soft market in reinsurance, some strategic plays could rapidly become a double-edged sword for some players.
A number of big pure-play reinsurers have stressed during this renewal season the merits of the fact that they do not compete with their clients. While many reinsurers have launched or expanded primary operations in recent years, the natural consequence of this is starting to wear a bit thin with some clients and the cycle is starting to reverse.
Large reinsurers that have aggressively expanded into primary insurance in recent years could start to face a backlash from their clients, warns Jed Rhoads, the president and chief underwriting officer for Markel’s Global Reinsurance Division.
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Reinsurance, Insurance, Jed Rhoads, Markel Global Re, PartnerRe, Charles Goldie, Hannover Re, Ulrich Wallin, Gen Re, TransRe, Ken Brandt, North America