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With a market steering more towards commoditisation, the value of the traditional reinsurance business model is waning, particularly in North America, where reinsurers are more focused on brokers than in Europe, Christian Reber, partner and managing director at Boston Consulting Group, tells Intelligent Insurer.
Reber argues that there is a case for change in the industry, as the old business model is hardly growing in terms of size but also in terms of financial returns.
Reinsurers are under pressure to restructure their business and innovate in order to differentiate themselves or may see their income dwindle, he suggests.
“You’ve got several things coming together: a low point in the cycle, and a soft market that just keeps on enduring because there is nothing that makes it hard,” Reber says.
Reinsurance, Cedants, Europe, North America, Boston Consulting Group, Swiss Re, Munich Re, Christian Reber, Torsten Jeworrek