Interview: Eric Andersen
“We have made strides but we are not there yet,” he says. “We have a fantastic
together all the options a client has at its disposal in a holistic way. We used to
“Most clients are agnostic as to how they structure their risk transfer options.
want the right answer for their needs whether it be a cat bond or a traditional programme.
“We are breaking down any remaining silos and just seeing everything as capital. We will look to bring in the right teams and expertise as it is needed by But that is the beauty of reinsurance: we tend to have fewer more targeted of just doing what is right by each one.”
traditional brokers. The broker boasts a much wider array of specialist clients, ranging from cat modelling tools to specialist claims handling capabilities.
transition, believing it is a natural and inevitable one that will also help the broker understand its clients better. But he also accepts that it involves a change
relationship moves away from just getting a deal done and more towards
occur gradually over time.”
A DRIVE TOWARDS SCALE
dynamics—its traditional brokerage units must deal with changes in this world too. The aforementioned trend of M&A among reinsurers will also change the market for traditional placements. A smaller number of bigger players will now be competing for business.
with more negotiating power is not always a good thing for brokers. Andersen is philosophical, however. The market has always expanded and contracted over
10 | INTELLIGENT INSURER | Spring 2015
time, he says. He also believes there will remain roles for smaller more specialist bigger entities.
20 years ago and there is an element of tiering now that wasn’t there then. But there will always be smaller companies able to be more nimble and create that
He also notes that the bigger and complex the reinsurer, the more ways a
can also create strategic options that might not be there with smaller players.”
He stresses that this M&A wave is only part of the much bigger picture of
the industry. He notes that very few reinsurers have not moved to harness this capital for their own purposes through the use of sidecars—changing the are entering the space from the other direction and looking increasingly like reinsurers.
of these funds are starting to act more and more like reinsurers. They have underwriters and claims people, so where do they go next with the risks they take on?”
if a series of large catastrophe losses cause substantial losses in this sector? Will believes it is a largely moot point.
“Yes it will be interesting to see how they will react but you have to remember
that reinsurers will react as well. Whatever happens, it is likely we will ultimately happened before. Where that capital comes from and the vehicles used to put it to work is largely irrelevant.
“The task for us in such a scenario would again be to simply match the capital
available to our clients.”
“Capital is not staying in its own swim lane any more. It is forever pushing to be closer to the ultimate buyer.”
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 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60