The continuing influx of new capital into the market has been the biggest issue in the sector this year and will continue to be a big talking point during conference season.
Property Claims Services (PCS), the catastrophe analytics provider, has made two strategic moves: it has made plans to move into the Korean market and will provide a listed cat index for the Cayman Stock Exchange, consolidating traded options for its members.
The influx of third party capital into the reinsurance market could displace up to $40 billion of traditional equity, with the capital likely to be either returned to shareholders or deployed elsewhere.
One of the hottest topics at Monte Carlo this year will undoubtedly be the growing influx of third party capital into the collateralised reinsurance market and the many challenges this presents for traditional reinsurers.
The industry is better prepared to deal with large catastrophes than ever before, a factor which has been assisted by convergence capital, according to Alastair Speare-Cole, CEO of JLT Re.
Amer Ahmed, the chief executive officer of Allianz Re, says the effect the recent influx of alternative capacity is having on pricing will be a big issue and discussion point in Monte Carlo this year. He sees the issue with the perspective of both a buyer and seller of reinsurance and he says the impact it is having on pricing worries him.
As more insurers transfer legacy business to specialised insurers and financial investors look to run-off as a new investment, Arndt Gossmann, CEO of DARAG explains why the sector is booming.
Brit Group has said it is looking to expand its distribution network by opening a branch office in Bermuda. The office will focus on underwriting excess workers’ compensation reinsurance as well as US property-catastrophe reinsurance, retrocession and ILW’s covers.
“No news is usually good news in reinsurance.” That was the message from Denis Kessler, the chairman and chief executive officer of the reinsurer SCOR, discussing details of the group’s new strategic plan which he presented to investors on September 4.
Diversification should not be regarded as a panacea by reinsurers and the industry as a whole must be wary of the consequences of under-pricing catastrophe risks however they are packaged.