Baden-Baden Survey In association with Swiss Re


19.10.15 MONDAY


In association with Swiss Re, Baden-Baden Today has been conducting a survey of conference delegates, the responses to which will be published daily.


What do you hope to achieve from the Baden-Baden conference?


“Baden-Baden us


is for really about


communicating our plans for 2016 with our many reinsurance


partners.


Notwithstanding a very difficult market, with our focus on diverse specialist classes and nimble and innovative


underwriting we can


talk very positively about opportunities in 2016. I hope we can talk about demand but I fear another conference will be dominated by talk of over-supply and consolidation.” William Mills, group head of ceded reinsurance at Beazley Group


“An update on market conditions and latest news and to increase awareness of our new ‘LitmusQ’ financial health


scoring tool.


We’re close to launching a new version of LitmusQ, a financial health screening tool, which takes 30 data points from insurers’ publically available accounts and calculates a set of key ratios along with some algorithms around growth and volatility to give a credit score out of 100.” Peter Hughes, managing director, Litmus Analysis


“I am prepared for discussions on concrete needs of our cedants. The


question


whether the reinsurance


of current structure


needs refinement due to changes in the market will come up. For some cedants Solvency II triggers an interest in higher nat cat coverage. All in all I expect demanding days balanced by a few hours of casual discussions at our traditional Swiss Re Monday Party.” Nicola Rautmann, Swiss Re market executive Austria & CEE


Other answers: “To meet existing and prospective clients and get some indication of market trends”—CEO of a European ILS fund; “Access new markets in our target territories”—vice president of an Indian insurance broker; “To understand reinsurers’ strategies for the next renewals and to explain and discuss our business with our supporters”—CEO of a cooperative insurer in Saudi Arabia; “A higher profile and to gain knowledge”—an adviser to a reinsurer in Azerbaijan.


What are the main trends being seen in the European re/insurance market?


“Europe attracts a lot of interest from reinsurers all over the world. Large Asian re/insurers and conglomerates are looking at expansion into Europe as a diversifying territory. Despite the opportunities within the European market, overall growth for reinsurance is limited. Therefore, as a general trend, reinsurers have to consolidate, aiming for growth and diversification through acquisitions.” Alkis Tsimaratos, head of Europe West, Willis Re


“We are looking to


understand what ground has been conceded by reinsurers with regard to broadening terms and conditions, in exchange for smaller price reductions. Weakening terms and conditions are less visible to external observers but can be just


as


detrimental to financial strength in the medium term.” Martyn Street, senior director in insurance, Fitch Ratings


“The soft market


conditions are still the main feature. Others could be: the emergence of hedge fund-backed reinsurers and the competition or opportunities they offer; reinsurers partnering with alternative capital; the low interest rate environment and investment opportunities in ‘real assets’ such as infrastructure projects; and a flight to quality—the dominance of the major players.” Carlos Wong-Fupuy, senior director, analytics, AM Best


Other answers: “The ongoing drive to consolidate reinsurance panels and optimising reinsurance spend by combining existing covers or added perils to existing covers at no additional premium”—CEO of a European ILS fund; “Reinsurers in general are more conservative, at least with regard to our area, which we feel will develop into better rating levels”—CEO of a cooperative insurer in Saudi Arabia; “The market is getting worse”—director of a UK broker; “The current economic situation will influence reinsurance business for the upcoming year”— the deputy general director of a Russian insurance broker.


We’re smarter together 12 | BADEN-BADEN TODAY | DAY 1: Monday October 19 2015 www.intelligentinsurer.com | www.bermudareinsurancemagazine.com


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