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lthough the European market generally enjoys fewer big losses in comparison with


 Central Europe represent a stark reminder that big losses do occur and can hit the market’s  That is the view of Bertrand Romagné, general manager of the French branch covering reinsurance at the XL Group, when asked how the European market compares with other parts   


          Generally speaking, North America produces a greater frequency of losses than Europe but this is  “If we think about Europe, it has a low


frequency loss pattern—so it is not abnormal to    Europe reminded the reinsurance industry that  the market could see a loss that would represent           


 but the losses also highlighted the need for better         


21.10.13 MONDAY


 A


costly—models will need to improve to better   Romagné said he is seeing more competition





“What is certain is that the European market is seen as an essential contributor to  the market.”


             


          “Again, the market (insurance and reinsurance)


must factor those types of perils into the pricing as they may be infrequent but they can be quite


in the European market—mainly driven by the        is gradually moving the market away from its  “Lately we have seen more third party capital entering the market and more ILW and cat bonds being placed for the continental European        traditional reinsurance is also not only restricted to wind but cat bonds for earthquake have also   When asked whether the move of many


players to Zurich has made a difference to competition, he says that it has not altered capacity has but highlighted the importance of  “Most players that are active currently


were active before but maybe from different     that the European market is seen as an essential    you cannot write a balanced book by writing  


Changing dynamics are creating a buyers’ market I


ncreased capacity, competition and changing market dynamics around European property


catastrophe business have created a buyer’s market for European cedants, according to       with changing reinsurance buying patterns, are           


    low natural peril loss activity, reinsurers are  programmes in loss free territories on the back          


        straightforward loss free business, with the reductions


       Reinsurers are also reviewing their view


of risk on loss affected programmes which, together with the history of the placement and        


 and will receive more modest adjustments than  the current market environment enables cedants to consider buying the reinsurance that they want,  “Cedants should take advantage of


      provide company-wide solutions to protect against earnings volatility alongside capital


20 | BADEN-BADEN TODAY | DAY 1: Monday October 21 2013


Tony Melia


        reinsurance structures to consolidate risk appetites, are the underlying drivers of changing 


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