Reinsurers Divided On Way Forward
Reinsurers on either side of the Atlantic are divided over what business strategy is best following the global recession, Reuter news agency reports today (Dec.8).
Reuter said a report by consultancy firm PWC shows European reinsurers are overhauling their business models while counterparts in Bermuda and the US are keeping to their pre-crisis business plans. The PWC report was based on interviews with 18 reinsurance chief executives and presidents.
The differences may reflect business conditions on each side of the Atlantic and looming regulatory changes in Europe, PWC said. The PWC report report suggests the majority of European reinsurers have already begun implementing substantive adjustments to their strategy as a result of both the economic crisis and major regulatory changes known as Solvency 2 which take effect in Europe in 2013. These adjustments include plans to change the way they do business — with some going as far as to say they were repositioning the risk transfer proposition as they analysed the emerging changes in the market. In comparison, Bermuda and US executives say their fundamental business model had not changed as a result of the financial crisis, signalling diverging strategic directions for the global reinsurance industry
The consultancy released its report to coincide with the annual conference of global property and casualty (P&C) reinsurers now underway in Monaco. Bermuda’s Partner Re , Everest Re and XL Capital are all attending along with other US and European reinsurance giants.
