Contradicton in statements in Monte Carlo raises cedent concerns; brokers' role enhanced.
Can cedents still enjoy the same close relationship with reinsurers when risks are becoming increasingly more syndicated?
That was the question raised by cedents during the Global Reinsurance magazine Roundtable, attended by senior representatives from AM Best, Axa Cessions, Guy Carpenter, Max Capital, QBE, Validus Re and Zurich.
Sven Schade of Axa Cessions, said a market which sees increasing syndication could have effects on reinsurer-cedent interaction.
“We can’t have a close relationship with a reinsurer if we have a wider spread of reinsurers.
“We canâ€™t have a close relationship with a reinsurer if we have a wider spread of reinsurers.
Sven Schade of Axa Cessions
“It is a contradiction in the messages being put forward, a contradiction that I have not heard being mentioned in the current climate in which more reinsurers are being invited to participate in a risk.”
Mark Talbot reinsurance buyer for Zurich said the broader spread of reinsurers – currently being favoured in the market – required “new thinking and new models”.
Meanwhile, others said the scenario enhances the brokers’ role. Marty Becker, CEO of Max Capital, said: “It is more a brokers’ market now than it has been in quite a while.”