Convergence of capital complete: Guy Carp CEO
The convergence of traditional reinsurance and capital markets solutions was finally complete in 2012 with new ILS-type solutions now as relevant and available to cedants as more traditional reinsurance solutions. This means a time of change and opportunities for cedants and brokers alike.
That is the view of Alex Moczarski, president and chief executive of Guy Carpenter, speaking in a wide ranging interview due to be published in the spring issue of Intelligent Insurer. “We believe that alternative and traditional sources of capital will continue to grow together. In fact, we think the distinction between ‘traditional’ and ‘alternative’ is becoming less and less meaningful. They are complementary,” he said.
He said the availability of such options is a good thing for cedants who have more choice as a result. Brokers must take an increasing responsibility for helping their clients choose the type of coverage – or mixture of types of coverage – best suited to them.
“The structure of the dedicated reinsurance sector continues to evolve as new sources of capital and product innovation enter the market, influencing a change in reinsurance purchasing patterns,” he said.
“Convergence provides an opportunity for us to help our clients understand how to make the best use of these diversified capital market products in a way that maximises risk-adjusted returns.”
Some of the other topics covered by Moczarski include where the growth is likely to be in reinsurance in the future and how new technologies and risk modeling techniques will also help clients better manage the new and evolving risks in the industry will face in the future.
