25 April 2013 Reinsurance

Alternative capacity influx will benefit mutuals

Recent changes in the sources of capital being put to work in the reinsurance markets could favour mutual insurers who will become increasingly valued by traditional reinsurers keen to maintain long-term relationships with these clients.

That was one of the conclusions of a recent statement released by Willis Re’s mutuals team in response to its recent report 1st View April 2013 Renewals Report. It stated that with many traditional reinsurers concerned over both their existing portfolios and their access to future growth, mutual insurers have the perfect opportunity to strengthen their existing relationships.

“Traditional reinsurers are very aware that while some larger commercial buyers are reducing their use of reinsurance in this phase of the reinsurance cycle, mutual buyers value long-term sustainable relationships throughout the entire cycle,” said Robin Swindell, executive vice president of Willis Re. “This is the perfect time for mutuals to demonstrate that they are reinsurers’ preferred customers.”

John Haydon, executive vice president of Willis Re, added that the unique ownership structure of mutuals makes them very good clients for reinsurers.

“Mutual insurers are in business for their members for the long term and should receive the recognition they deserve from reinsurers. Like mutuals themselves, reinsurers should never leave their loyal customers in the lurch,” he said.

John Cavanagh, chief executive of Willis Re, added: “Seismic changes occurring in the traditional reinsurance market are clearly favorable for mutual insurers. Willis Re has always been a strong advocate of the long-term business models characterized by mutual insurers, and will continue to provide analytical and transactional support to our clients in this important market.”

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