Intelligent Insurer asked a range of industry figures: when it comes to negotiations, does the cedant or the reinsurer hold the upper hand at the moment and has this changed in recent years?
“It’s a buyer’s market. No ifs, no buts. The scramble for business to a certain extent reminds me of the late 1990s. The only difference: based on the sophistication of models and pricing, this time reinsurers know exactly what they are doing. That is concerning to some extent, however, when viewed against the background of the increasing gap between supply and demand, it is not surprising.
“There is a difference between the big reinsurers and the rest. The major players can still negotiate, not least based on their broad support and large capacities. For those who offer merely capacity, the squeeze out has begun. The broadening of our business model to encompass structured, complex and derivative-based business has served us well in this market.”
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Andreas Molck-Ude, New Reinsurance Company, Bernd Heinze, AAMGA, Clive O’Connell, Goldberg Segalla Global, Anna-Kitty Ekstam, If P&C Insurance