Optimistic outlook for reinsurance says Aon
A new report sounds an optimistic tone for the reinsurance industry with strong demand expected.
Aon Benfield’s report shows that reinsurance demand has increased over the past 18 months with further growth expected in four key areas:
- Property/Casualty – expected to remain stable in 2017 subject to any reinsured loss events.
- Mortgage – growth to come mostly by regulatory capital requirements.
- Cyber – dominated by the US with annual growth of between 30 and 50 per cent. New EU data protection laws to drive international growth.
- Crop – returned to profit in US. Asia showing significant growth, especially India.
For the P&C sector, Aon Benfield CEO Eric Andersen explains: "The catalysts for this increased demand for property and casualty reinsurance include factors such as the emergence of poor underwriting results in certain casualty classes, out-sized losses from regional exposures, and the introduction of the Solvency II regulatory regime across the European Union."
Chubb appoints risk engineering executive
Chubb Insurance has appointed Keith Marks to the role of executive vice-president and manager of its commercial lines Risk Engineering Services division for North America.
Based in Chicago, he will oversee the the design and delivery of risk engineering service programs for commercial customers in North America and provide leadership for the risk engineering Executive Specialists for workers compensation, casualty, commercial auto, property, and environmental insurance as well as the Market Segment team.
Marks has been with Chubb since 1997 and has held various senior roles.
Meanwhile, Raimund Navakas has been named executive vice president and will continue to lead the Risk Engineering Practice for Chubb's Overseas General Insurance division based in New York.
Demand growing for customized re/insurance solutions
Non-traditional insurance and reinsurance solutions are increasingly common as demand grows for more customized solutions.
A report by
Swiss Re reveals that insurers and corporates are becoming more sophisticated in how they manage their capital and risks which may include centralizing insurance buying by business lines and territories.
"This has led to higher limits and higher retentions, as well as the substitution of local contracts with larger and more complex solutions", says Swiss Re Chief Economist Kurt Karl. "However, this goes hand-in-hand with a greater need for tailored re/insurance structures that address unique situations and can sometimes be enhanced with innovative features to meet specific client needs."
The shift in purchasing is being driven by insurance industry consolidation, globalization of risks, technological innovations, and regulatory reforms, the report says.
Swiss Re highlights three motivators driving demand for strategic solutions: risk transfer; corporate financing; and enabling long-term growth objectives.
