Although there are hints towards pricing stabilisation in the global reinsurance market, continuing declines driven by increased competition and a lack of significant natural catastrophe losses signal a challenging 2017. Intelligent Insurer investigates.
Technology will continue to reshape the re/insurance industry in 2017 and the way companies embrace change will determine the winners and losers of the future, says Richard Clark, head of business development and specialist commercial at Xuber, part of CSC.
After a spate of big deals and with consolidation in the re/insurance industry showing little sign of slowing, Intelligent Insurer examines the different ways the success—or failure—of a merger or acquisition may be judged in its aftermath.
Some of the pressures the re/insurance sector faced in 2016—low interest rates, uncertainties around Brexit and a soft market—are likely to persist in 2017. But some additional drivers are set to affect the performance of the sector, as described by executives from major players such as Markel, Swiss Re and Willis Re.
2016 has again been a benign year in terms of large catastrophe losses, but geopolitical developments have added new challenges to the sector. Intelligent Insurer asked executives from re/insurance firms including Swiss Re, Argo, AM Best and Willis Re for their opinions on the most important developments in the re/insurance industry in 2016.
Sharing data will not inhibit an individual insurer’s business, but rather will promote business across the entire industry, says Tom Johansmeyer of ISO/Verisk Insurance Solutions and Rachel Anne Carter of Carter Insurance Innovations.
Soft market pressures, a prolonged low interest rate environment, low barriers to ILS capital entering the sector, the digital economy, tepid GDP growth… Hiscox Re’s Bill Lazzaro argues that how we respond to the current challenges in the reinsurance sector will define our future.
With the UK government looking to attract more ILS vehicles to London, the market is wondering exactly what it’s trying to achieve. Katherine Coates and Ashley Prebble, partners at Clifford Chance, cast an eye over what’s happening.
The insurance-linked securities market is looking forward to 2017 with cautious optimism after recovering from a rollercoaster of a year in 2016, according to Paul Schultz, CEO of Aon Securities.
Pressure on the reinsurance business has been significant in 2016 due to a low interest rate environment and a soft market, but 2017 is likely to be even tougher and could lead to negative ratings actions, according to major rating agencies.