Speaking to The Insurer at this year’s reinsurance gathering in Baden-Baden, Reina said increased volatility within Europe, the Middle East and Africa has led to buyers of reinsurance seeking to work closely with their brokers and carriers to develop appropriate risk transfer solutions.
“These days CFOs, COOs and even CEOs work increasingly closely with their own reinsurance buyers and their broker to discuss and analyse the different solutions for that company,” Reina said.
“Volatility is becoming an increasing concern,” he added. “An increase in the frequency of medium-sized losses, often held within their retentions, are causing serious concern to the buyers.”
The executive said such concerns over volatility are resulting in an increased purchase of reinsurance; evident through the rise in facultative reinsurance purchasing, increase in proportional reinsurance and in aggregate solutions.
“Aggregate solutions… are becoming more and more at the core buying strategy of companies,” he added.
What is more, capacity in treaty business within the EMEA region continues to be “abundant” and reinsurers risk appetite remains “strong”.
Reina also pointed to market efforts seeking to address, even reverse, the decline in reinsurance prices in the EMEA region seen over the last few years adding that the overall good results in the region will help “maintain pressure on rates”.
“The pricing momentum driven by the heavy losses witnessed in the US and Japan will have a limited effect in the EMEA region,” he said.
“The overall positive results of the region will maintain rates at the competitive level, which will benefit buyers.”