In the current volatile environment, it is crucial that cedants can trust the promises made by their reinsurers. Intelligent Insurer speaks to Maiden Re about how collateralisation is helping them to stand behind their promises.
"As the world becomes an ever riskier place, it is more important than ever before for reinsurers to be able to demonstrate their integrity to their cedants and that the commitments they make will be honoured.
One way of doing this is to collateralise the agreements they make with those cedants, so that those cedants know that whatever happens, there is money available to meet their exposures. This is the strategy followed by Maiden Re—the company handles the US portfolio of diversified reinsurance of Maiden Holdings, Ltd.
“We try to be the best reinsurance partners that it is possible to be, and we do that by looking for products and services which add value to the customer, so that we can differentiate our reinsurance offering and not just provide a reinsurance contract,” says Karen Schmitt, president of Maiden Re.
Maiden Re, Collateral, Reinsurance, Dedicated Financial Trust, Bermuda