Relationships to the fore in January renewals
For the January renewals cedants are placing an increased emphasis on their relationships with reinsurers, with more attention being placed on the finer details of the deal and the reinsurer’s ability to deliver on its promises. Pricing is not at the top of the agenda. That is the view of Peter Schmidt, CEO of Catlin Re Switzerland.
“Talks have been much more about the deal, the structure, and the information around the contract; pricing has not been the main topic in most conversations,” he said.
“This is the feedback I have from markets all over continental Europe. Whereas in Monte Carlo there was perhaps a nervous mood, here discussions focus more on the technical side of the deals.”
Schmidt added that after five years in the European market, Catlin Re has confirmed itself as a relationship player—“a factor that distinguishes us”.
“When clients start saying that Catlin is someone they want to do business with in the long run and across all lines of business, that gives me confirmation that we are on the right track.”
His aim for the coming year is to further strengthen that relationship aspect of the business. He believes this is a key differentiator in current market conditions.
“We aim to continue to grow in our quality relationships. In a market where there is a lot of capacity and cedants have a tendency to retain more, to say that we want to step up our shares is a strong statement.
“Our claim is that we walk the talk. Over the past five years we have proved that we can deliver and people know that.”
As part of this process of building, expanding and strengthening relationships, the ability to sell across several lines of business is key to Catlin Re. Five years ago, when the company kicked off its activity in Europe, it placed a clear emphasis on cross-selling and Schmidt believes this remains as important—if not more so—today.
“This approach meant we managed to build a diversified portfolio,” he said. “We have the expertise to service this, and the fact that this is recognised makes our positioning easier.”
