Global reinsurers have weathered pandemic impacts well, but amid other growing challenges brought on by climate risk, social inflation and other types of perils, companies need to maintain an innovative mindset, according to a new AM Best report capturing the views of panelists from a recent reinsurance industry briefing.
The Best’s Market Segment Report, “Realistic Optimism in the Current Reinsurance Market,” is based on a briefing in which a panel of AM Best analysts and industry executives discussed how the pandemic and natural disasters have dominated recent claims experiences, as well as pricing trends and underwriting discipline in an environment where risk is becoming more difficult to price.
Offering market observations are two of the reinsurance industry’s leaders—Kathleen Reardon, chief executive officer of Hiscox Re & ILS; and Juan Andrade, chief executive officer of Everest Re Group; topics discussed included environmental, social and governance (ESG), social inflation and opportunities for investors in insurance-linked securities. The panelists were optimistic about the coming year for reinsurers.
“Companies with good track records and strategies will continue to attract capital … From a reinsurance perspective, this is the best market in almost a decade,” said Reardon.
AM Best Senior Director Carlos Wong-Fupuy also sat on the panel, along with Chief Rating Officer Stefan Holzberger, who moderated. The report highlights their views on how the market is focused on technology and innovation, as well as on adapting to evolving and emerging perils. On innovation, Andrade said it is impossible to achieve without the right corporate culture.
“Innovation is about how you run a company,” said Andrade. “It’s everything. It’s about how you create efficiency in enterprise; it’s about how you create creativity within your people; it’s how you develop new capabilities. It’s how you look at the future.”
To view the complete AM Best briefing, please visit http://www.ambest.com/webinars/reinsurance21/index.html.