At The Insurer we designated September as #REinsuranceMonth and became The ReInsurer to help fill the gap left by the cancellation of the Rendez-Vous de Septembre, the industry’s annual gathering in Monte Carlo.
Over the course of the month, we spoke to its stakeholders and customers via a variety of channels: bitesize podcasts, thought-provoking video interviews, weekly virtual panel debates, weekly digital editions and breaking news alerts.
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With prior year deterioration coming through on casualty business, the pricing environment for the class is a major focus for Aspen Re’s Richard Milner during renewal season.
Covid-19 and social inflation concerns have “accelerated” the need for reinsurers to tighten terms and conditions in liability and casualty lines, according to Christopher Donelan, CEO, Global Reinsurance, Sompo International.
The reinsurance market has “a long way to go” before it shifts from being in recovery to growth mode as carriers tackle increasing losses, worries over prior year reserves and the Covid-19 fallout, Axa XL’s reinsurance CEO Charles Cooper told The ReInsurer.
The insurance industry has a “very significant” role to play in the transition to a more sustainable world, according to EY’s global insurance lead Isabelle Santenac.
P&C (re)insurers’ premium growth will rebound at a quicker rate following the Covid-19-induced recession than after the global financial crisis, but economic reliance remains a key concern, according to Jérôme Haegeli, group chief economist, Swiss Re.
The legacy sector will continue to see an increased amount of activity “for the foreseeable future”, according to TigerRisk’s Wade Gulbransen, as carriers look to free up capital to take advantage of the hardening market conditions.
The market cannot look at the current rate improvements as a temporary fix, the strategy must be much longer-term than that, according to Andy Hottinger, president EMEA and LatAm at AXIS Re.
It is “only natural” that Argo’s reinsurance buying philosophy will change as the company refocuses its operations, according to the company’s group head of ceded reinsurance Katie Partington Howarth.
Sea surface temperatures across the Atlantic remain conducive to more storm formations during this year’s hurricane season, according to RMS’ James Cosgrove.
There is no indication the Covid-19 pandemic has led to any improvement in social inflation trends and only sustained rate increase will make up for years of underpricing the risk, says Nicola Parton, head of P&C business management reinsurance, Swiss Re.
Canadian insurers can expect to face a “rational” reinsurance renewal heading into 2021, with the market benefiting from plenty of capital and having avoided the soaring loss trends that have impacted carriers in the US, according to Beach’s Jeff Turner.
The use of technology remains an essential tool to help (re)insurance intermediaries drive efficiencies amidst rising pressure from across the market to streamline costs, according to Ian Wicks, Ed Broking’s chairman of non-marine reinsurance.
US severe convective storm losses have now topped $10bn in each of the past 13 years, with annual double-digit billion-dollar losses from the peril now a “new normal” for the insurance industry, according to Aon’s head of catastrophe insight Steve Bowen.
Rated reinsurers have an opportunity the likes of which has not seen in years at the upcoming renewals as clients turn away from the collateralized market over trapped capital and commutation concerns, according to Beach’s Clark Hontz.
The successful underwriters of the future will be those that align the interests of customers, brokers, capacity providers and their own balance sheet, according to Volante Global’s Talbir Bains.
With the Lloyd’s and London (re)insurance market pursuing an agenda of cost saving and digitalisation, Igor Best-Devereux, the founder and CEO of eReinsure, says the writing is on the wall for those companies that do not embrace technology.
The onset of Covid-19 has made soft cyber targets even softer at a time when the pandemic has already led to a spike in the number of cyber attacks taking place around the world, according to RMS’ Russell Thomas.
The low interest rate environment is “nothing short of a catastrophe” for the casualty market and the sector needs to keep on pushing for further improvements to ensure it stays ahead of loss trends, according to Axis Re’s Jason Busti.
The hardening market conditions are driving a flurry of capital raising at Lloyd’s from scale-up, start-up and run-off deals, reports James Morris, MD, head of UK insurance and captive banking, corporate banking at Barclays.
The (re)insurance market should increasingly factor climate change into their business decision making as investors, ratings agencies and financial regulators apply pressure on firms, according to Guy Carpenter’s Jessica Turner.
Bermuda’s (re)insurers coped well with the shift to virtual working as the pandemic took hold amid important renewals, with capital raising now a focus ahead of anticipated opportunities from hardening rates, according to John Huff, president and CEO of the Association of Bermuda Insurers and Reinsurers (ABIR).
The global reinsurance sector is expected to cover half of the ultimate Covid-19 loss for the industry, according to Fitch Ratings’ global head of reinsurance, Brian Schneider.
Bertrand Labilloy, chief executive of the reinsurance arm of French state-backed CCR, has revealed the group has been able to grow the reinsurance business by almost 20 percent in 2020, having benefitted from the improving rate environment.
The 144A catastrophe bond market will see new sponsors coming to the market as cedants try to manage the increased pricing in the traditional reinsurance and retro markets and the tightening of collateralised capacity on offer, according to GC Securities’ Cory Anger.
The entire (re)insurance industry must work together if it is to increase the circa $1bn of theoretical capacity that currently exists in the cyber market, according to Catherine Mulligan, the global head of cyber for Aon’s Reinsurance Solutions.
The global reinsurance sector will fail to earn its cost of capital in 2020 and possibly in 2021, with the sector’s financial performance hit by the coronavirus crisis, warned Robert Mazzuoli, director of EMEA Insurance at Fitch Ratings.
The formation of PartnerRe’s Global Cat unit is a sign of the Bermudian’s intention to be a leader in the global catastrophe market, according to the unit’s CEO Greg Haft.
Rates in long-tail classes will have to improve greatly if they are to compensate for lower investment income and the impact of persistently low interest rates, Scor’s Laurent Rousseau has warned.
Reinsurers will push for “tighter” terms and conditions on wordings and also apply pressure on commission levels during the upcoming renewal season, Swiss Re’s head of casualty underwriting reinsurance Jason Richards has predicted.
Insurers and their commercial clients will become increasingly reliant on big data to understand the potential impact of future trade disruption on pricing, their client’s risks and balance sheets, according to Russell Group’s Suki Basi.
Munich Re has become the latest to add its support behind national efforts to create public-private reinsurance solutions to pandemic risk, noting that state-backed reinsurance pools are “the only way” to ensure future pandemics are made insurable.
Despite the opportunity Ascot Group’s CEO Andrew Brooks is seeing in the reinsurance market, he warns some of this should come with a “significant health warning”.
In light of the significant opportunities presenting themselves in the reinsurance broking space, building out capabilities in this area of the business is a key priority for McGill and Partners’ founder and CEO, Steve McGill.
Brokers will “push back hard” against further attempts from reinsurers to reduce ceding commissions for US casualty quota share business at upcoming renewals, BMS Re president US CEO Pete Chandler has predicted.
Hardening market conditions present an opportunity for Convex to “refine” its portfolio through reinsurance buying and through the way it underwrites to push for growth in attractive lines of business, according to Anne Middleton, head of ceded reinsurance and capital modelling at Convex.
Hardening market conditions will help drive an increase of US excess and surplus (E&S) lines business into the London market which presents an important opportunity for underwriters to achieve profitable growth, according to Convex’s Paul Brand.
ILS managers are shifting focus towards more detailed data analysis as part of an increased investment drive in analytics, according to Jin Shah, client director at RMS.
The upcoming reinsurance renewals will see “a flight to quality” with the traditional market model regaining prominence as collateralised capital remains trapped, Everest Re’s John Doucette has predicted.
As the world’s understanding of Covid-19 continues to evolve, RMS will soon launch new pandemic outlooks that will reflect assumptions about vaccines to help businesses prepare for a potential second wave, says Maria Lomelo, who leads the LifeRisks platform.
The US casualty market still needs more pricing improvement over and above what has already been imposed as it strives to get a handle on the adverse reserve development emanating from the 2013 to 2018 prior years, according to TransRe’s Ken Brandt.
TigerRisk has already grown its headcount by 20 percent in 2020 and the reinsurance broker expects to add yet more staff to its roster by the end of the year as it takes advantage of the significant consolidation among its rivals to broaden its footprint.
New capital entering the reinsurance industry will impact pricing going into the 2021 renewals, but issues around Covid-19 and other losses will temper any potential dampening effect from the new influx of funds, TigerRisk’s Wade Gulbransen told The ReInsurer.
Swiss Re’s Jonathan Isherwood believes that Covid-19, the impact of normal peril losses including most recently Hurricane Laura and the yield environment provide an inflection point for the market that will drive further hardening.
Arch Re CEO Maamoun Rajeh has thrown his support behind a “mortgage-style” public-private partnership as a means to enable the industry to respond to future pandemic risks.
Lloyd’s and the London Market must not become “complacent” of the success of e-placement witnessed during the Coronavirus lockdown but should instead look to build on momentum, said Kirstin Duffield, CEO of Morning Data.