Structure is more important than price on renewals
While he is not expecting any radical change, the CEO of Barbican Insurance Group is always open to working with new reinsurers and will consider changing the structure of the company’s reinsurance programme to ensure he has the best fit for the shape and mix of the business as things stand.
David Reeves, chief executive and one of the founding directors of Barbican, said the business will buy a consistent amount of coverage this year but he will be exploring changes in the structure of the placement.
“We do buy a significant amount of reinsurance and we have no intention of changing that strategy,” he said. “We will buy a consistent amount in line with our risk appetite. But we will look at the structure of our programme.
“We want to buy in an intelligent way that best suits our portfolio of businesses and risks. That may cost more or it may cost less, the key is that it is the right solution for us.”
Barbican also uses industry loss warranties (ILWs) to hedge some of its risks, a strategy Reeves said will continue.
“They have been important for us in the last few years especially for some of the bigger risks and particularly for the energy market. This will remain a part of our strategy.”
In terms of the number of reinsurers Barbican works with, he said its panel sizes have remained stable. This is in contrast to some cedants that have been reducing the number of reinsurers they work with.
“We work with a core of reinsurers and counterparties that support us—we always have and always will,” he says.
“We are careful to maintain that core but we are willing to add to the list from time to time. But there will be no radical departure from that list.”
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