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FOR IMMEDIATE RELEASE
OLDWICK - SEPTEMBER 12, 2019 12:03 PM (EDT)
In this AMBestTV episode from the 2019 Les Rendez-Vous de Septembre (Rendez-Vous) conference in Monte Carlo, Monaco, Senior Director Carlos Wong-Fupuy, Managing Director, Analytics – EMEA, Greg Carter, and Senior Director Bob DeRose, all of AM Best, say optimism prevails across the reinsurance industry that pricing will improve as access to capital evolves. Click on http://www.ambest.com/v.asp?v=ambpanel919 to view the entire program.
DeRose highlighted one of the major themes at the conference: cautious optimism.
“Cautious optimism was one of the big themes this year,” said DeRose. “Given the underlying weakness and fundamentals over a rather long period, as well as the events of 2017 and 2018, I think the broad industry is really recognizing that there is a fundamental need for improvement in pricing. The market, and certainly the reinsurers and some of the alternative capital, are acknowledging that the dynamics of risk have changed.”
Exploring how third-party capital has reacted to the 2017-2018 catastrophe losses, Wong-Fupuy said, “From an investor’s point of view, the sector is still attractive, especially due to the low-interest rates, because of the lack of opportunities in other sectors. What is happening is that they are taking a pause and assessing the opportunities more carefully. Investors are going to be much more selective on where they are deploying that capital.”
Looking forward, Carter focused on the role of alternative capital in the reinsurance market.
“I think a key trend is a closer alignment between alternative capital and traditional capital, whereas before they were seen as almost completely separate pools of capital. When market opportunities exist, capital finds a much quicker way to get into the marketplace. Now, rather than going through the traditional startup route, we have the alternative capital form,” he said.
To access a copy of AM Best’s recent Best’s Market Segment Report on the global reinsurance industry, visit http://www3.ambest.com/bestweek/purchase.asp?record_code=277679 .
For full video coverage of the Rendez-Vous conference, including exclusive executive interviews, visit http://www.ambest.tv/rvs19 .
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