Cyber and other emerging risks top the agenda for reinsurers, poll finds

Reinsurers continue to wrestle with the question of whether and how to engage with new and emerging risks such as cyber, with more than half of respondents to an Intelligent Insurer survey of the industry saying it was the big issue on their company’s agenda.

In all, 52 percent of respondents said they were concerned about how they should engage with new risks such as cyber.

More than one in five (21 percent) respondents said their chief concern was profitability, considering the challenging combination of soft prices and low interest rates, while a little more than one in 10 (12 percent) said their top priority was talent management.

A relatively small number of respondents (6 percent) said they were concerned about mergers and acquisitions (M&A), despite the prevalence of speculation in the press and within offices about potential offers and deals.

One respondent said there was concern about “excessive fee competition and unrealistic expectations of some clients/potential clients of what is a fair price for a task well done”.

Another cited historic under-reserving, in casualty classes specifically.
The survey also asked respondents how they would characterise their company’s approach to insurtech, with 38 percent responding that insurtech has been overhyped.

A typical comment said: “Too much meaning has been attributed to insurtech”, although there was acknowledgement that technology will develop over time, and that this will ultimately have an impact on markets.

Nearly a quarter (26 percent) said they are developing their own technology in-house, while a similar number (24 percent) said they are still watching the space and considering their next move.

One respondent noted his company has been placing reinsurance for insurtech companies.

Only 2 percent of respondents replied that they are partnering with or investing in insurtech companies.