You are here
Insurance 

Reinsurers must swiftly adapt to the changes

by

Frédérique De Simone

12 September 2019 09:30

Photo : Freepik

Changes in the reinsurance sector is accelerating, and to ensure the viability of this market in the long term, it is necessary to further increase the rate, but also a better understanding of the risks and know how to deal with it properly, ” said the research institute sigma of the reinsurer Swiss Re.

Sigma evaluates the gap of protection for natural disasters, mortality and health expenditures, increased to $ 1 200 billion u.s. dollars in 2018, a record.

Weight on the reinsurance

The reinsurance sector is not only facing a risk landscape changing, but also exhibits increasing as the global population increases. People live longer and accumulate more assets, particularly in areas prone to natural disasters.

This sector is becoming more and more important consideration for the insurers and reinsurers of the world, is the main engine of growth in general insurance, Swiss Re this year.

The risks are increasingly complex and their growth is rapid, says the research institute of Swiss Re. Some risks, such as secondary hazards (forest fires, drought and flooding) or cyber risks, are evolving, and require new approaches, including risk modeling.

The increase in the cost of liability insurance in the United States is another emerging problem, because reinsurers must find a way, again, to model and assess the impact of inflation, social. However, access to and the understanding of the data available hampers the major insurers because of the lack of know-how, specific skills and adequate resources to decode and to use it wisely.

The abundance of capital on the reinsurance market has had an impact on the entire value chain of reinsurance, increased the sensitivity to the cost and requires the reinsurers to find new ways to create value for the major insurers.

Have partners non-insurers

Swiss Re suggests that partnerships other than with the insurers, and even outside of this sector, and this, as much in his association with customers, with companies. This allows the development of innovative technological solutions to fill the gaps in terms of protection, exploit new sources of growth and provide better products and services to the consumer.

For example, the solutions to parametric can provide a pricing end-to-end administration of policies and regulations automated of loss in the event of a natural disaster. This helps the customers to increase the effective penetration of insurance in markets previously under-served, and provides a economic relief fast to the subscribers.

Related posts

Leave a Comment