Europe offers opportunities after Brexit

The UK’s vote to leave the EU has potentially accelerated JLT Re’s plans for Europe, according to Keith Harrison, chief executive officer of JLT Re UK and Europe, who spoke to PCI Today.

“The company will probably open up more offices within continental Europe, rather than growing European business through London,” he said.

Earlier this year, the reinsurer opened a Stockholm office and moved to new premises in Paris to gear up for further growth.

“It’s still very early to comment on Brexit but it’s a real concern that the uncertainty means people could make moves they wouldn’t ordinarily make if they had certainty,” said Harrison.

He also mentioned the speed at which Asian players are breaking into the more insurance-mature economies with a spate of mergers and acquisitions (M&A).

Harrison added that the likes of GIC Re and China Re are becoming more prevalent in the global reinsurance market than they have been before.

“West has been looking at East the whole time, but now you’ve also got East looking West. To some degree, the larger global players out there are no longer European or American.”

Across the global scene, re/insurers are looking at new products to address emerging market needs, and innovation is beginning to emerge.

“There’s a lot of innovation in the London Market especially,” Harrison explained. “There’s a realisation that offering a siloed product to clients doesn’t necessarily reflect their needs or what they are after in today’s environment.”

Opportunities have also arisen from Solvency II, emerging over the past year. Harrison explained that there has been an increase in appetite for capital deals, including adverse development structures.

“With the uncertainty around inflation and investment yields, and the current state of the market, we’re seeing an increase in demand for adverse development covers, not just in Europe but in the US too,” he said.