Reinsurance News

Polish insurance market needs surety reinsurance support: Smartt Re

7th January 2022 - Author: Matt Sheehan

Smartt Re CEO Tomasz Libront believes the Polish insurance market needs to open up to wider cooperation with foreign reinsurance markets in order to gain capacity for large construction projects.

The broker notes that the combined involvement of banks and insurance companies in the Polish construction sector has exceeded PLN 50 billion (USD 12 billion) in recent years, of which PLN 20 billion is attributable to the insurance sector and over PLN 30 billion to the banking sector.

At the same time, the last 10 years have witnessed a significant increase in the duration of bonds required as collateral, which slows down the process of releasing bonding capacity for new investments.

Libront therefore suggests that greater cooperation with foreign reinsurance markets could enable Polish insurers to gain additional, unprecedented bonding capacity for new, multi-billion dollar construction projects.

“This is an attractive prospect for a reinsurance broker such as Smartt Re, which is highly specialised, especially in finding capacity on international markets for difficult risks and demanding projects,” said Libront.

Radomil Mioduchowski, Head of Surety in Smartt Re, also commented: “We are facing the need for the insurance market to provide bonding capacity in the coming years at an unprecedented level, while at the same time making extensive use of the bonding facilities already in place.”

“Planned multi-billion dollar investments are one thing,” he continued. “The Polish surety segment will be further affected by rising inflation. It will certainly increase the value of individual contracts and thus proportionally the required bond amounts. We therefore are ready to present and explain the need of the Polish insurance market to the international reinsurance players.”

Smartt Re is one of the largest Polish reinsurance brokers specialising in finding capacity in international markets to cover large and difficult-to-insure risks in the energy, infrastructure, marine, aviation or new technology industries.

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