Reinsurers should focus on new risks
Thursday October 06 2011 | 11:51 AM
Reinsurers should work with corporate insurance buyers to develop solutions for the risks highlighted by the spate of natural catastrophes over the last two years, said the president of the Federation of European Risk Management Associations (FERMA).
Peter den Dekker said reinsurers needed to understand how business models had changed so they could support insurers in devising innovative solutions to risks that companies face now and will do in future.
Den Dekker also said risk managers could do more to make (re)insurers comfortable with the risks that they wanted to have underwritten. “The reinsurers complain about complex business models and a lack of information, so we need to learn more about their businesses, their processes, how they use their models and what information they want from us.”
The soft market and prices are another big topic within the industry, said den Dekker. “This is a strong indication that reinsurers are trying to talk up prices,” he added.
“If there is a hard market coming, we do not want it to come like a bolt from the blue, and we do not want Solvency II to be used as the rationale for a sudden large rise in insurance rates. We have known about it for a long time now.”
However, corporate insurance buyers understood that there could be good reasons for rate rises. den Dekker said. “I think for what our members are looking for, price is not the most important criterion. We are looking for capacity and solutions. Those are important things for us.”
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Article compliments Captive Review
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