The reinsurance market is in a strong position after two years
of profits and covering its cost of capital. But it now must retain
discipline and manage the cycle correctly as pressure mounts to put
any excess capital to use – and new capital enters the market
in a variety of ways.
That was the overall sentiment of a round table of the
Bermuda:Re+ILS Monte Carlo roundtable, sponsored by Aspen
Insurance Group. The session, called 'Applying discipline and
innovation in a softening market' was moderated by Wyn Jenkins,
managing editor of Bermuda:Re+ILS.
Christian Dunleavy, group president and CEO, Aspen Bermuda, said
reinsurers are in a much better place after two years of profits
following the market's correction. But the focus must now be on
cycle management. "The market is in a much better place; I
would say it is softening, but not soft. But we need a real focus
on risk and rates. One thing that is clear is that risks are
increasing."
