Flexibility is key for renewals: Aon
Flexibility will be a key requirement in the coming renewals, according to Jan-Oliver Thofern (pictured), chief executive officer of reinsurance solutions Germany at Aon.
Faced with a market in flux, he believes it will be necessary to explore different strategies for clients.
“That flexibility can be in structure, it can be in the placement process itself—there are lots of aspects that we’re discussing with our clients at this time,” he said.
He emphasised the sheer number of different parameters that are in play at present. In Europe and Germany there is the impact of rising interest rates, which should give US dollar-denominated reinsurance companies, like for like, a higher capacity.
Pushing against this potential gain are inflation, global geopolitical tensions, and rises in claims—most recently in the US in the wake of Hurricane Ian.
“All these things are going to impact us to a varying degree, depending on where in the world your exposures are located,” Thofern said. “From an insurance standpoint, it varies depending on what the type of business you’re trying to have reinsured.
“As far as the renewals in Europe are concerned, I think we’re going to see some interesting movements in the run up to the final phase of the renewals.”
