Monte Carlo hot topics

As the 60th edition of Les Rendez Vous de Septembre closed its gates on September 15th, the re/insurance world had its eyes on the Monte Carlo, where the current trends future expectations and industry disruptors are being the focal points of the discussions.

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".

Related articles

JLT Re: Sector in danger phase regarding the release of reserves

The re/insurance sector is in a danger phase in which reserves are being released faster than accident year experience would dictate, the situation being similar to the 1998-2000 interval, says JLT in its viewpoint "Enough in Reserve?" released at Monte Carlo.

2016-09-13

AON: Reinsurance demand increasing as growth opportunities emerge

Reinsurance demand has increased over the past 18 months, with the cession ratio across the global property and casualty insurance industry registering a small rise for the first time in several years, and the trend expected to continue for the remainder of 2016, according to the September 2016 edition of AON's Reinsurance Market Outlook report.

2016-09-13

HANNOVER Re expects to see greater stability overall in both prices and conditions fopr the January renewal season

In the context of a cvasi unchanged property and casualty reinsurance global market from the previous year, still governed by an intense competition, HANNOVER Re expects to see greater stability in prices and conditions for the treaty renewals as at 1 January 2017, the company's representatives said in Monte Carlo. Also, with Solvency II influencing upon the purchasing behavior of insurers, opportunities for reinsurers should continue to be available.

2016-09-12

GC: Industry must adapt and innovate to fully grasp opportunities

A series of fundamental disruptive forces are driving monumental changes in the global economy at an unprecedented rate. These forces compel the (re)insurance industry to adjust to the new reality and capitalize on the opportunities created, according to Victoria CARTER, Vice Chairman of International Operations at GUY Carpenter.

2016-09-12

MUNICH Re EUR 500 million in premium volume from innovative products

Increasing digitalisation and interconnection of the world in almost all areas of the economy means that risks are taking on new dimensions, both private individuals and companies seeking insurance protection for this exposure. Global premium volume for cyber insurance is currently around USD 3 billion, but it is expected to rise to USD 8-10 billion by 2020, said the MUNICH Re's representatives at a press conference in Monte Carlo.

2016-09-12
photodune-3834701-laughing-girl-xs

Swiss Re: Technological progress will change business models

Even though macroeconomic conditions and the overall industry environment remain challenging, Swiss Re believes that technological advances will create new and valuable efficiencies. The industry can increasingly access new risk pools emerging from the integration of data, analytics, and technology that addresses the insurance protection gap, creating new opportunities for growth.

2016-09-12

Swiss Re sigma: Demand for customised reinsurance and insurance solutions is growing

The insurance industry's consolidation, as well as globalisation of risks, technological innovations, and regulatory reforms have driven an increasing sophistication in the capital and risk management of insurers and large corporations, shows the latest SWISS Re sigma report released in Monte Carlo. "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, stressing out that. "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."

2016-09-12

Meet us in Monte Carlo!

Will you be in Monte Carlo at "Les Rendez-vous de Septembre 2016"? Visit our XPRIMM Stand at the Fairmont Hotel! You can find there the latest issues of our XPRIMM Publications specialized magazines and you will also receive a free copy of the XPRIMM Insurance Report!

2016-09-09

ON THE MOVE

TOP EVENT

VIDEO: GIF 2017, LONDON: HRH The Prince of Wales welcome address

"Insurers have to play an important part not only in managing current risks, but also in modelling the future by contributing to a better understanding of risks, to closing the insurance gap and setting an example of responsible investment policy," HRH The Prince of Wales said in his welcome address at GIF 2017.

20.07.2017

See all