A.M. BestTV: The Rendez-Vous Conference: Brexit Has Insurers Exploring New Relationships, Changes to Operations

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OLDWICK - SEPTEMBER 14, 2016 01:57 PM (EDT)
In this ^A.M.BestTV episode on location from Les Rendez-Vous de Septembre (Rendez-Vous) reinsurance conference in Monte Carlo, Monaco, the United Kingdom’s withdrawal from the European Union is setting off a host of potential changes within the London insurance market. Click on http://www.ambest.com/v.asp?v=rvs3916nc to view the entire program.

Insurance executives spoke at the conference about how to position their operations for continued access across markets once Brexit becomes a reality.

“Brexit is a factor for Lloyd’s, because, obviously, Lloyd’s has access as part of the European Union, in terms of passporting rights to the 27 member states,” said John Nelson, chairman, Lloyd’s. “About 11% of Lloyd’s business is with the European Union, but a large part of that is actually reinsurance. However, reinsurance is largely unaffected by Brexit. Therefore, it is not a huge issue for Lloyd’s, but it is an important one, since the company does maintain access to the European Union’s single market.”

Alex Finn, EMEA insurance leader for PwC, said that no matter what market shifts occur because of Brexit, the industry would adapt.

“In the long run, the insurance industry is going to survive, so it is going to go on,” said Finn. “However, the reality is, there are short- and medium-term challenges the industry will face. In the medium term, it is probably going to have some restructuring, with higher capital costs as a result of that restructuring, and possibly, higher operational costs. Will they be hugely significant? No, but they could have an impact on the economics of the business.”

Other people that appear in this episode:

• Kathleen Reardon, chief executive officer, Hamilton Re;


• Ben Reid, chief executive officer, London Market Group;


• Eric Andersen, chief executive officer, Aon Benfield;


• Julian James, president, global markets, Allied World;


• Greg Wojciechowski, president and chief executive officer, Bermuda Stock Exchange; and


• Darren Wray, chief executive officer, Fifth Step.

Visit http://www.ambest.tv/rvs16 for full coverage of the 2016 Rendez-Vous and watch exclusive interviews with key reinsurance executives. Interviews conducted thus far include: Mike Van Slooten, international head of market analysis, Aon Benfield; Andrew Holderness, head of corporate insurance, Clyde & Co; James Kent, president, Willis Re North America; and many others.

Recent episodes of ^A.M.BestTV include:

• The Rendez-Vous Conference: Insurance Disruption Takes Many Forms; Fewer Aim for Core Risk: At Rendez-Vous, insurance leaders said that they hope to harness or head off market disruptors by remaking distribution and business processes or by finding new ways to share risk: http://www.ambest.com/v.asp?v=rvs2916nc.


• The Rendez-Vous Conference: Reinsurers Say Relevancy is Key to Expanding the Ranks of Insureds and Risks: At Rendez-Vous, reinsurance executives said their challenge is to convince insurers and the public that their products and services are affordable, valued and effective in guarding against a growing range of global risks: http://www.ambest.com/v.asp?v=rvs1916nc.


• Global Reinsurers Focus on Innovation to Maintain Relevance: A.M. Best Vice President Robert DeRose and Assistant Vice President Greg Reisner address the state of the global reinsurance market: http://www.ambest.com/v.asp?v=globalre916.


• 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.

^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.