Reinsurance giant Swiss Re has reported that it intends to “further grow and diversify” its natural catastrophe portfolio as it capitalizes on opportunities to hedge the current volatile environment with insurance solutions.
Ahead of the company’s presentation at Rendez-Vous de Septembre 2022 in Monte Carlo today, Swiss Re shared its view on the state of the market and possible implications for the renewals season.
Specifically, it argued that challenges such as global geopolitical tensions, macroeconomic developments and climate change have resulted in heightened demand for risk protection.
Re/insurers, in response, need to increase their capacity, Swiss Re says, by focusing on modelling and contract certainty to ensure their pricing is adequate for the risks taken.
While the market remains volatile, increased risk awareness and exposures will result in more demand for insurance protection across all businesses and regions, the reinsurer added, which should translate into a positive outlook for premiums.
Swiss Re also claims that it is “well positioned” to navigate these market conditions and expand its exposure, given its significant research team and focus on the renewable energy sector.
“On top of impacts from COVID-19 and increasing losses from natural catastrophes, the re/insurance industry is now confronted with issues like inflation, risk of recession and geopolitical tensions,” commented Swiss Re’s Chief Executive Officer Reinsurance, Moses Ojeisekhoba.
“We have proven our resilience by supporting clients and society throughout the last years by paying large insurance claims. As we see cost drivers accelerating in this dynamic risk environment, insurance premiums must be carefully calibrated to keep pace.”
Group Chief Underwriting Officer Thierry Léger also stated: “To enable the insurance industry to keep up with increasing demand, three factors will be key: evaluating and modelling the evolving trends, ensuring a shared understanding of contractual terms and generating improved technical margins to reflect the effective risk.”
“In times like these, when challenges manifest themselves in the form of heightened risks, we at Swiss Re are well positioned to navigate these turbulent times together with our clients,” added Ojeisekhoba.
“By leveraging our risk knowledge, capital strength and client franchise, and providing innovative solutions we continue to create value for our clients. This is supported by our leading data and analytics capabilities, which will play a key role for future success.”
