Monte Carlo survey
In association with Swiss Re, Monte Carlo Today conducted a survey of senior industry executives ahead of and during the conference. The responses to various key questions will be published in this newsletter.
2016 marks 60 years of the Monte Carlo Rendez-Vous. Where will the industry be in another 60 years’ time?
“Given the development of technology nobody can predict how we are going to interact 10 years from now, let alone 60 years from now. However, there will be a need for risk transfer from primary insurance entities to the capital markets, whether it goes through reinsurance or other entities. I also believe that there will be a need for good personal relationships.”
Kaj Ahlmann, managing director, global head of insurance strategy, Deutsche Asset Management
“More of the business will be transacted on a digitised exchange and some risk traded on a daily basis. Many insurers focused on motor will have disappeared due to changes in transportation technology. I suspect the likes of Munich, Swiss and Hannover Re will still be around. Bermuda and other offshore domiciles may no longer be the domiciles of choice given the OECD’s base erosion and profit shifting (BEPS) efforts. I’m also not sure if there will be a Rendez-Vous any more—global warming/sea level rise?
Dirk Lohmann, chairman & chief executive, Secquaero Advisors
“The industry is very different today from what it was 10 years ago, let alone 60. New practices are continually being embraced by all parties, not accepting change is not an option. The reinsurance principle of “risk transfer” will be with us in 60 years’ time, but the methods of how it is transferred will continue to evolve at the heady pace of the past 10 years. When the September Rendez-Vous comes around it may be just a case of “Beam me up, Scotty”!
Hugh Price, chairman, Alwen Hough Johnson
Digitisation and technology are seen by many as key to change in the industry. What will this change look like?
“If the ‘stuckism’ in the industry that gets in the way of technological advance can be removed, then a better product can be designed—lower cost, more efficient and more aligned with customer needs. The opportunity is then to create more demand for both insurance and reinsurance, potentially resulting in higher revenues and better control of the risks and rewards. This has to be the best way to control the increasing commoditisation of the product.”
Peter Hughes, managing partner, Litmus Analysis
“Managing general agents (MGAs) are in the vanguard of the long overdue revolution to bring technology to the insurance market. Often legacy IT systems make it difficult for established players to invest in the necessary improvements in client interactions. As MGAs are unencumbered they are well placed to develop single entry points for risk details, linked to comprehensive underwriting and risk platforms, that will deliver efficiency and cost savings—but more importantly better products and services for policyholders.”
John Holm, executive, MGA Investments, Asta Underwriting Management
