OLDWICK, N.J.--(BUSINESS WIRE)--In this A.M.BestTV episode, A.M. Best Vice President Robert DeRose and Assistant Vice President Greg Reisner address the state of the global reinsurance market. Click on http://www.ambest.com/v.asp?v=globalre916 to view the entire program.
Both analysts said reinsurers are continuing to explore acquisitions, partnerships and new underwriting and investments strategies to counter a soft market and intense competition. These issues also are examined in a recent Best Special Report, titled, “Innovation: The Race to Remain Relevant.” Go to http://www3.ambest.com/bestweek/purchase.asp?record_code=253443 to view the entire report.
A.M. Best also recently presented its annual webinar, titled, “The State of the Global Reinsurance Market,” which can be viewed at http://www.ambest.com/webinars/reinsurance16.
“Insurers know that relevance is important as well as innovating to remain relevant,” said Reisner.
“Over the past 12 months, mergers and acquisitions have been one aspect companies have used to remain relevant,” said DeRose. “We have seen companies go into new, unique classes of business. We have seen partnerships among competitors and a lot of innovative initiatives on the part of reinsurers to really try to round out their operations, discover ways to have access to capacity and be well-positioned for the challenges that the market is currently providing.”
A.M. Best has held a negative outlook on the reinsurance industry since August 2014 due to challenging market fundamentals and pricing pressure. According to DeRose, “many industry participants feel or believe that the market is nearing bottom, or rate adequacy is finding its way to the bottom. The challenges for reinsurers will be to remain discipline and to make the decision as to whether to shed business going forward rather than continuing to entertain it.”
A.M. Best will hold a Reinsurance Market Briefing at the 2016 Rendez-Vous de Septembre in Monte Carlo, Monaco, on Sunday, September 11. Senior analysts from A.M. Best’s international offices will present the company’s perspective on the global reinsurance market, as well as key rating issues, capital management challenges and more. For more information, visit http://www.ambest.com/conferences/rmbseptembre2016.
Recent episodes of A.M.BestTV include:
- Aon's Gray: Captive Sponsors Find Ways to Lower Cost of Risk: Nancy Gray, regional managing director, Americas, Aon Global Insurance Managers, said captive owners are resetting limits and deductibles while taking on new coverages, all with a goal of decreasing overall cost of risk: http://www.ambest.com/v.asp?v=gray816nc.
- London Market Insurers Could Face Rocky Road Ahead: Catherine Thomas, senior director of analytics, A.M. Best, said London-based insurers with a global focus face a host of developing challenges, including the likelihood that catastrophe activity will return to normal levels, there will be increased competition in local markets as well as from new risk facilities set up by global brokers: http://www.ambest.com/v.asp?v=londonmarket916.
- Good Risk Management Starts With Quality Data: David Wright, managing director, Beach Re, a reinsurance intermediary, said focusing on acquiring and using reliable data is more important than focusing on the next emerging risks: http://www.ambest.com/v.asp?v=wright516.
- Thunderstorms, Flood and Hail Drive U.S. First-Half 2016 Catastrophe Losses: Texas storms accounted for 80% of insured natural catastrophe losses in the United States in the first half of 2016. Flooding in other U.S. states, including West Virginia, raised that first-half total to $11 billion, according to Mark Bove, a senior research meteorologist for Munich Reinsurance America, Inc.: http://www.ambest.com/v.asp?v=natcat816.
A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View A.M.BestTV episodes at http://www.ambest.tv.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2016 by A.M. Best Company, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.