Many challenges ahead Interview:


Q What are the main challenges A There are several. The persistently chal-


facing cedants? lenging global economic environment


and volatile stock markets, coupled with ever- changing market and regulatory circumstances that continuously present new socio-political scenarios. The changing expectations of con- sumers with respect to products and distribu- tion channels that need to be constantly ad- dressed. Then there is the inability of many cedants


to harness the volume of data generated, which presents challenges to the insurance industry globally. Technology is another challenge. The insurance sector is often said to be always a step behind in embracing the latest in technology. Innovating and adapting to enhance its capac- ity and functionality is another hurdle. Climate change is perhaps the biggest chal- lenge ahead. Usually, insurance is termed the   change could upset the apple cart. Insurers will need to increase their efforts in research and de- velopment (R&D), and respond adequately to the natural catastrophes that are visiting us with increasing regularity and ferocity.


Q What support can reinsurers lenges?


provide to mitigate those chal- A A reinsurer supports, stabilises, strength- ens and streamlines the insurance sector.


The challenges outlined above are true for rein- surers as well. Still, despite the catastrophic   - vestment markets, the reinsurance sector has managed to weather these challenges.


Q What role can reinsurers take in A Natural catastrophes, and the losses they


dealing with climate change? cause, are escalating and pose enormous


threats to insurers. We need to engage with this issue on a much larger scale than we are pres- ently, and adopt a proactive approach. According to Swiss Re, the average weath-


Ashok Kumar Roy, GIC Re


22.10.12 MONDAY


Ashok Kumar Roy, chairman and managing director of GIC Re, speaks to Intelligent Insurer about the most pressing issues facing insurers and reinsurers.


Ashok Kumar Roy, chairman and managing director of GIC Re


“Insurers will need to increase their efforts in research and development (R&D), and respond adequately to the natural catastrophes that are visiting us with increasing regularity.”


er-related insurance industry loss in the US   billion annually—insurance companies will therefore have to improve their R&D activi- ties and catastrophe models to enable them to predict more accurately weather-related catastrophic events and how they will impact their businesses.


Q What other issues will be dis- meeting this year?


cussed at the Baden-Baden 14 | INTELLIGENT INSURER —BADEN-BADEN TODAY | Monday October 22 2012


be dominated by pricing—markets are soft as capacity is abundant. Risk modelling and its role is another topic we will be discuss-   with more common sense and prudent human judgement rather than depending on models. Solvency II also merits deep debate in


A 


        scenarios across the globe. The road-map for Solvency II, its impact when it comes and its evaluation and regulation when implemented needs to be discussed in detail. 


www.intelligentinsurer.com


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20