An alignment of interest is key for success: VIG Re board member

Reinsurer should seek alignment of interest in reinsurance structures, according to Tobias Sonndorfer (pictured), member of the board of directors of  VIG Re.

“Our goal is to work with our clients on a long-term basis. It’s not sustainable if losses are unevenly distributed, ie, if losses are happening, reinsurers take on the lion share, while insurers have only limited impact into their profit and loss statement. This alignment of interest needs to be reached,” he says.

“The renewal discussions should find a balance between a reasonable retention compared to the limit of a placement. Balance for me means that reinsurer cover severe loss situations while insurers cover the frequency losses in their portfolios and price for it accordingly.”

Levers for success

Aside from aligning interest, Sonndorfer states there are two levers that are crucial for success for the upcoming 1/1 renewals.

Communication will be, and always is, a key factor, according to the manager.