Gunther Saacke, the chief executive officer of Q-Re, the reinsurance subsidiary of Qatar Insurance Company (QIC), believes the unique ownership and capital structure of the reinsurer can offer cedants much-needed diversification on their panels away from the “vagaries of Wall Street”.
The constant delays around the process for the Solvency II directive to be approved and ultimately implemented by the European Parliament represent a source of great frustration to European insurers in need of certainty around if and when the directive will come into force.
The insurance industry should expect more consolidation and greater competition in the years to come with the most successful firms becoming those that can innovate quickly and launch new products into new markets. But the industry must also resist yet more regulation.
XL Group’s recent expansion of its US reinsurance operations with the opening of offices in Dallas, Texas and Philadelphia, Pennsylvania, combined with the launch of a property facultative arm to cover the western region has been prompted by a desire to get closer to its clients and work with them more strategically.
Two of Europe’s largest re/insurance institutions posted solid 2012 results this week with both boasting healthy underwriting profits and solid combined ratios.
The use of transactional insurance, a type of policy tailored to cover the risks surrounding commercial business transactions such as mergers, acquisitions and private equity investments, could rise by as much as 25 per cent in 2013.
Martin Sullivan, the deputy chairman of Willis Group Holdings and chairman and CEO of the Willis Global Solutions unit, will leave the firm in May 2013, after a transition, to pursue other interests.
While the insurance industry in the US is trying to build support and momentum to get the TRIA extended beyond 2014, the fight could be longer and tougher than the industry realises.
The meteor blast in Russia last Friday was a timely reminder of the importance to the insurance industry of catastrophe modelling for extreme events such as meteor strikes and solar flares.
Insurers and reinsurers in Europe will feel vindicated by a recent report published by the EC and conducted by Ernst & Young that concludes that the practice of co-re/insurance agreements in the subscription market does not break competition rules.