Robert Mazzuoli, director, EMEA Insurance, Fitch Ratings
While reinsurer ratings are unlikely to be affected by claims stemming from COVID-19, there are many questions that need to be answered as to who will ultimately pay, Robert Mazzuoli of Fitch Ratings told Intelligent Insurer.
Negotiation in favour of litigation is likely to determine the extent to which reinsurers bear the burden of claims stemming from COVID-19 as they seek to maintain good relationships with clients and avoid any damage to the industry’s wider reputation. But reinsurers could well seek concessions around rate increases and other terms and conditions in return.
This was one of the main points from an interview with Robert Mazzuoli, director, EMEA Insurance, at Fitch Ratings. The interview took place on Intelligent Insurer’s Re/insurance Lounge, an online platform where interviews and panel discussions are available on demand.
Even following one of the most volatile and turbulent periods in the industry’s history, the global reinsurance sector’s capital strength has remained largely unscathed. But Mazzuoli added that Fitch Ratings remains of the belief that losses relating to the pandemic will be an earnings event as opposed to a capital event.
“When the pandemic started, we performed a stress test to see what the impact of the pandemic might be, and whether it may lead to a capital event,” said Mazzuoli.
Fitch Ratings, Business Interruption, Claims, Insurance, Reinsurance, Robert Mazzuoli, UK