Reinsurers with undifferentiated `me too' strategies could be squeezed out of the market. What business models will be viable in five years' time and what steps do you need to take to make sure position your business out in front?
Protecting against a new breed of emerging risks requires co-ordination across corporations, insurance companies and policymakers. But as the pace of change within the marketplace accelerates, a major rethink of how they operate and compete is needed.
The reinsurance market continues to face a number of challenges that are forcing changes to their business models and how they are organised. These include:
While 2013 was a relatively benign year for the industry, due to the absence of major catastrophes and the availability of surplus from prior years’ reserves, the outlook is deteriorating as rates decline in key areas and external pressure from competitors and regulators increase. Companies are responding with many different business models reflecting their agility and appetite for change. Winners and losers will emerge as the environment drives the evolution of new forms of capital, better use of data, improved risk management and increased focus on areas of potential growth.