Monte Carlo hot topics
The XPRIMM Team is present with the full set of publications at the stand at the Fairmont Hotel, while xprimm.com brings you the latest insights from the specialists present now in Monte Carlo.
Live Feed from Monte Carlo:
- InsureTech is going to revolutionize the insurance and reinsurance industry. Some USD 9 bn on capital has already entered the sector, some of it coming from Silicon Valley.
- Innovation is also taking place in products and distribution as companies enter new classes of business, such as cyber risk cover. This has, according to most expert, a huge potential. Another is terrorism cover.
- According to SWISS Re's Sigma report, there is increasing demand for customized and more strategically-motivated re/insurance solutions.
- Solvency II coincided with financial market volatility to hit balance sheets but reinsurance can assist life, P/C or composite players, according to Guy Carpenter.
- SCOR Has a new Strategic Plan with target for 2016-2019. The group premium increased by 34% since 2013. The US reinsurance market will play a key part in the expansion plans for the medium term with almost half of group treaty expected to be generated by the US market by 2019.
- Bermuda's PARTNER Re's results took a hit from cat activity in its interim results but this is considered "normal" for the business
- There is a severe protection gap in both developing nations and in areas of developed economies, according to Denis KESSLER, CEO of SCOR. Closing the gap meant not just providing more insurance for catastrophes, but also for other types of coverage, including mortality and disability, KESSLER said to The Insurance Insider in Monte Carlo. "All types of risks are underinsured and I believe that this is a fantastic opportunity for reinsurers. Instead of complaining in Monte Carlo about how tough it is for us, we should go and try to bridge the protection gap and extend coverage."
- LLOYD's considers the possibility of negotiating EU access on its own after Brexit. Inga BEALE, LLOYD's CEO: "It is possible we could eventually negotiate directly with the EU, but now is the wrong time to try to start that process". "The most likely solution is we will form a separate subsidiary onshore in the EU", John NELSON, LLOYD's Chairman said.
- Munich RE: Global reinsurance market will grow one percent per year until 2018. Torsten JEWORREK, Board Member, Munich RE: "Declining reinsurance appetite in Asia is one of the main reasons for subdued growth".
- AM Best retains negative outlook for the reinsurance sector. Pressure from convergence capital will continue to influence the industry on the long run. The impact of Brexit would probably be negligible for reinsurers.
- PwC: 70 percent of insurance business leaders plan to implement a cost reduction initiative over the coming year. Stephen O'HEARN, Global Insurance Leader at PwC: "Many insurance executives have had bruising prior experiences with cost initiatives failing to deliver long-term gains or culture change within the organisation. But the time to confront the challenge is now."
- Alternative capital in the re/insurance industry had reached USD 75 billion at the end of the first semester of 2016. Growth pace has slowed. Paul SCHULTZ, CEO, AON Securities: "Growth is slowing a little but the traditional market is increasingly seeing this capacity less as competition and more as a complement to its growth objectives".
- AON Benfield Aggregate: Total global reinsurer capital (traditional and alternative) increassed by four in the first six montht to a record USD 585 billion.
- XL Catlin targets top 5 spot on the P&C reinsurance market. Greg HENDRICK, Reinsurance CEO, XL Catlin (via Monte Carlo Today)"We want to grow our market share with our current clients as well as finding new business. We are a viable player in the market and view ourselves as being in the top 10 P/C reinsurers. We'd like to get towards that top five".