The reinsurance industry has been disrupted through competition from alternative capital and is now seeking new pools of risk, according to a panel discussion at the 2018 Insurtech Insights June 19 and 20 conference in London.
The Greek economy has been in recession since 2010 and has the lowest level of insurance penetration in the EU. Nevertheless, there are pockets of growth and optimism, says Gerry Tighe, head of treaty at reinsurance broker MATRIX.
Having given up on reinsurance in recent decades, some large insurers have had a change of heart as they seek diversification and the access to the capital markets which reinsurers have developed in recent years. Is their bet that they can handle these volatile risks—and that their shareholders will back them—a risky one? Intelligent Insurer investigates.
Alternative capital has reloaded after the major nat cat events in 2017 and is in good shape to compete for cedants with the traditional reinsurance players and cause further pressure on rates, as recent market reports by Aon Benfield and Fitch Ratings suggest.
Munich Re expects its investments in digitisation, data and technology to become the major driver of future growth in its reinsurance operations. The German reinsurance giant sees digitisation as a means of moving the business closer to the end consumer while generating new technology-based products.
While presenting a sharp drop in profit for 2017 due to heavy natural catastrophe losses, Swiss Re CEO Christian Mumenthaler and chief financial officer David Cole praised the reinsurer’s diversification strategy away from P&C reinsurance which Swiss Re wants to further develop.
French reinsurer SCOR wants to grow its property/casualty portfolio in the US, particularly casualty business. But, stung by the mistakes of the past, it is proceeding with caution, Victor Peignet, CEO of SCOR Global P&C, told Intelligent Insurer.
Despite disappointing rate increases in the January renewals, Munich Re chief financial officer Jörg Schneider showed optimism when discussing his expectations for 2018.
Record losses from the 2017 hurricane season have failed to trigger the rate increases the industry had hoped, with many experts and reports based on analysis of the recent renewals now suggesting that low rates may be here to stay.
American International Group (AIG) CEO Brian Duperreault makes his first major move to reshape AIG and position it for profitable growth.