Argo will originate for others
Argo is well-placed in the market, having built on its previous performance over the year, according to Mark Watson, president and chief executive officer.
Watson highlighted two main milestones for the company as it heads into the end of year renewals. “There are two positives to talk about this year,” he told Monte Carlo Today. “The first is our continued evolution towards being remunerated for originating risk for third parties.
“This time last year we were putting in place a structure/risk transfer mechanism that would allow us to transfer risks to others if they were interested in our originating risk for them. And if you fast-forward to today, the majority of the property cat reinsurance risk we originate today, we originate on behalf of others. That’s been an important milestone over the past year.”
According to Watson, Argo is also focused on expanding this form of risk transfer from just property-cat insurance to other forms of insurance risk.
Argo is putting in place a couple of structures that Watson thinks will be of interest to third party capital providers, adding that it will be interesting to see over the next year if Argo can expand its offering of risk to third parties beyond just property-cat reinsurers.
The second thing Watson identified is the progress it has made with the evolution of its digital team and the business created within it.
“With another year under our belts we’re now at a place where we have a pretty good sense for what’s working and what’s not working, and how we can continue improving because we have data,” Watson said.
“There’s been an emphasis not just on making it easier for brokers or policyholders to transact with us, but also on how we think about risk, how we evaluate it and ultimately how we select risk. That is an equally important feature as our ability to use technology.”
Watson stressed that Argo had made a point of being nimble at all times in its history, adding that it strives to be more responsive and faster-moving than its rivals.
