Nat cat losses are an opportunity to prove resilience
Recent nat cat losses are an excellent opportunity for reinsurers to demonstrate their resilience, responsiveness and ability to pay claims, according to Ian Wicks, chairman of non-marine reinsurance, and Robert Wildbore, director, reinsurance, at Ed.
They argued that reinsurers and the insurance-linked securities (ILS) sector alike can prove their worth in such circumstances by responding quickly in terms of paying claims and by ensuring adequate capacity is available to clients to move forward.
“This is a time for the whole market sector to respond positively, and an opportunity for the ‘alternative’ sector to bed themselves in,” said Wildbore. “It’s an opportunity to pay, to reload if appropriate, and to show their value.
“Meanwhile, the traditional market is resolute and strong and ready to step up, and if you are willing to pay the price for the risk the capacity will be there.”
Regarding the possibility of rate increases, Wicks was circumspect.
“Each case will be dealt with on a client-by-client basis; I’m not convinced the rates on everything are going up.”
He added that the robust companies that are able to cope with the losses better than some will see this as a chance to advertise their resilience.
“Swift paying of claims and good behaviour is something for them to trumpet, and I think most people are viewing it as such,” he said.
Wicks added that for Ed, too, the current situation is a valuable opportunity.
“Just as this presents an opportunity for the carriers, it presents opportunities for the intermediaries and the more creative brokers,” he said.
“Steve Hearn is trying with Ed to create a company that, when it comes to client relationships, behaves like a much smaller broker. The closer you can get to understanding the issues that affect your client the better.”
On the subject of technological innovation within the industry, Wicks and Wildbore agreed there are opportunities here, too, for the creative broker.
“We are in a very good space to take advantage and play our role,” said Wildbore. “You need to be adaptable and flexible to deploy technology and to move quickly with the times.
“The investment we are making in technology recognises the way the market is going, and recognises the importance of relationships backed up with cost-effective, frictionless ways of doing business.”
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