Reinsurer strategies


DIVERSITY AMID A CHANGING MARKET


As rates in catastrophe business remain soft, Intelligent Insurer takes a look at the strategies reinsurers are adopting in an attempt to diversify beyond the intense competition and differentiate themselves from their rivals.


T


he trends in catastrophe lines in 2015 appear to be following a similar pattern as that witnessed in 2014: softening rates, an abundance of capital and higher retentions from insurers as they reassess their reinsurance requirements.


As such, reinsurers are increasingly seeking to diversify into more


                     competition by looking to enter emerging markets, write more primary business or expand into new lines.





focus and still being competitive,” says Mark Taylor, insurance partner at KPMG.





  been seen in US property cat but other classes of business are also under          underwriting discipline.”


14 | INTELLIGENT INSURER | Spring 2015


NEW MOVES  Ascot Underwriting, JLT, XL and Liberty have all made advances into the casualty and specialty markets.


Reinsurers that may historically have focused primarily on catastrophe


business are looking to enter new lines such as casualty and specialty for additional growth which is no longer being achieved within their current book. Others are looking to get closer to the source of the risk.


“The move into primary insurance is a big play. Although it can cover many classes the more popular ones seem to be personal lines/retail, small and medium sized enterprise (SME) and larger commercial risks,” says Taylor.


“Cyber and being able to cover these risks is also a big opportunity as


well as environmental liability, particularly outside of the US. We are also seeing the entry of more and more reinsurers into the life market.


            speciality risks as capital shifts from property cat looking for a new home.”


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