Influx of new capital and growth the biggest worries

The effect of alternative capacity on the re/insurance industry and the challenge of growth will be the two biggest talking points at PCI this year, according to an online poll of Intelligent Insurer readers carried out in the run-up to the conference.

Approximately two-thirds of all respondents chose one of these answers. In contrast, 23 percent said they were worried about the long-term effects of consolidation; only 11 percent said they were concerned about the soft market conditions at the moment.

Respondents’ attitudes to all questions were relatively nuanced, however.

Probably all of the above are a concern, with different clients having different emphasis on probably two or three of them,” said one.

In relation to the effect of alternative capital, not all respondents saw its influence as a bad thing.

“Alternative institutional capital and disruptive technologies will have a positive influence on expansive coverages,” one said.

The challenge of growth does seem a particular concern for many traditional players. The influence of alternative risk transfer structures and soft rates has put pressure on the top line of many re/insurers.

“We are being squeezed from all angles; there is simply not enough business to go around,” said one.

Others saw positive signs on the horizon. Several noted that they believed the private sector should be capable of taking on more government-held risks such as terrorism and flood risk.

Another stated: “Growth in the industry should not be a challenge given the continued protection gap in property.”

What will be the main talking points in PCI this year?