Data, cyber and the protection gap dominated conversations between insurance executives at this year’s Baden Baden reinsurance meeting, he said.
“The first theme that really stands out for me is data,” Baertschi said, continuing: “this has to do with the availability of data, the interpretation, the utilization. So, one of the things we work on with clients around this topic is to deploy our suite of P&C analytics to help them do exactly that.”
As a “a hot topic” in the industry, Baertschi explained there’s still much demand around cyber, but more work to do in understanding all of the related exposures.
Particularly poignant in the wake of the devastating natural catastrophe years in 2017-18 that left developing economies heavily exposed, Baertschi said the industry has also rallied behind solving the insurance protection gap for communities in need.
“[Another] thing that impacts our industry, not just in the short-term but long-term, is of course the protection gap. We need to have better protection for more people and more societies to make the world more resilient,” he said.
Reminiscent of the issues on many executives’ lips, Baertschi pointed towards government-level uncertainties that are driving harsh trading conditions for most.
“In the medium-term, we factor in a lot of political and macroeconomic uncertainty alongside a low interest rate environment, and so we need to focus our attention on the technical profitability on the underwriting side,” he said.
Considering how Swiss Re supports its insurer clients, Baertschi said this comes in the form of traditional balance sheet protection and capital management support, but also through the reinsurance giant’s “solution suite,” which is “geared towards helping them with growth, operational efficiency and to help them have a better underwriting experience.”