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he lower margins made on reinsurance catastrophe business placed in Europe combined with less established risk models available to assess these risks mean that buyers in Europe are less likely to be using alternative capital sources to place these risks, said Manfred Seitz, managing director of the international He said that while alternative capital is certainly present in the European market, mainly in the form of catastrophe bonds, it does is a big difference to the US market where catastrophe cover is more of a commodity class and placed both with traditional markets as He adds that in Europe, catastrophe
reinsurance is a smaller class of business generally and often placed in combination with other forms of reinsurance protection based on long established relationships between “Reinsurance is not only about catastrophe
protections and this is the space where capital market players are mostly and almost market there are certainly large global players in insurance and reinsurance that complement their catastrophe risk management structures market alternative capital instruments are very “Catastrophe cover is placed in conjunction with all other non-cat classes of business and long-term relationships with reinsurance
21.10.13 MONDAY
Europe still driven by deep relationships T
Manfred Seitz
about catastrophe protections and this is the space where capital market players are mostly and almost exclusively active.”
“I would generally regard the capital market risk appetite in Europe on a lower level, due to less developed and less solid cat modelling and smaller monetary margins compared to US cat Against this backdrop, he said the Baden- Baden meeting remains as important as ever to “The concentrated meetings and in many
cases already concrete negotiations in Baden- conference provides a valuable forum for in- person focus on the renewal issues to be resolved shortage of hotel rooms and long waiting lists
during the reinsurance week in Baden-Baden He believes recent loss events in Europe
majority of programmes will be stable in terms of structure with regulatory changes potentially “This means retentions should remain
relatively stable, while there could be an interest by some companies to purchase more capacity He said pending regulatory changes such
as Solvency II remain on the agenda of by its continuous delays while the broad thrust of regulatory reform is pushing some towards “As is very evident from comments in the broad
market, the continued delay of Solvency II is a already incurred and ongoing as well as uncertainty “Obviously, for outsiders and industry members
agencies and regulators may be an accelerator in this regard but I would think for many market participants this is and was a standard issue in the
Investment returns take the shine off Lloyd’s results P
oor investment results hit the performance
and remains a very attractive proposition for
by a reduction in the total investment yield underwriting returns still mean the market made
Lloyd’s Update report published by Aon The report said the weak investment
returns were caused by the low interest rate environment and the negative impact of rising The market also saw growth in this period,
24 | BADEN-BADEN TODAY | DAY 1: Monday October 21 2013
adjusted rate increases (1 percent), positive The report also noted that the continued
attractiveness of the Lloyd’s platform has been demonstrated by high levels of M&A activity Rating agencies AM Best and Fitch recently joined Standard & Poor’s in revising the outlook
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