In this Insurance Institute of London (IIL) reinsurance lecture David Flandro will talk about the disruption currently taking place in (re)insurance markets is at its most acute since the culmination of the financial crisis.
Industry reserves, deteriorating earlier catastrophe losses, and eye-popping expense ratios are combining with macro headwinds, the changes in investor appetite and less predictable global capital flows. All of this is driving an increased focus on risk selection and costs of capital. The most visible result is a hardening of pricing across multiple business lines, but the solution this time may not be capital driven, but technology driven.
Market disruption has happened before. The traditional response has been a round of capital raising and a new ‘class’ of (re)insurers with strategies designed to take advantage of the dislocation. The sector’s response today will be different. It will be driven not just by new capital, but also by wholly different means of processing and analysing underwriting data. This will require better servicing of capital with cutting-edge risk selection bolstered by data and technological innovation.
By the end of this lecture members would have gained an insight into:
• The state of the current (re)insurance market
• Ideas for how the market might evolve to meet its current challenges, especially through the use of technology
Alan Grant, Chartered Insurer.