Source: asiainsurancereview.com

Global reinsurers have weathered pandemic impacts well, but amid other growing challenges brought on by climate risk, social inflation and other types of perils, companies need to maintain an innovative mindset, according to a new AM Best report capturing the views of panelists from a recent reinsurance industry briefing.

The Best’s Market Segment Report, “Realistic Optimism in the Current Reinsurance Market,” is based on a briefing in which a panel of AM Best analysts and industry executives discussed how the pandemic and natural disasters have dominated recent claims experiences, as well as pricing trends and underwriting discipline in an environment where risk is becoming more difficult to price.

The panelists were optimistic about the coming year for reinsurers. Offering market observations was Ms Kathleen Reardon, CEO of Hiscox Re & ILS, who said, “Companies with good track records and strategies will continue to attract capital … From a reinsurance perspective, this is the best market in almost a decade.”

Mr Juan Andrade, CEO of Everest Re Group, said that it is impossible to achieve innovation without the right corporate culture. “Innovation is about how you run a company,” he said. “It’s everything. It’s about how you create efficiency in enterprise; it’s about how you create creativity within your people; it’s how you develop new capabilities. It’s how you look at the future.”