To stand still is to fall behind in reinsurance
Thursday, 05 14 2015, Category: Insurance and Reinsurance, Country: World
“To stand still” in an insurance and reinsurance market that is undergoing fundamental structural change, “is to fall behind”, say analysts at Keefe, Bruyette & Woods, echoing a message Artemis has delivered many times in the last few years.
Given the way the reinsurance market is changing it is seen as increasingly risky to try to carry on regardless, with little or no strategy for responding to the impact of lower rates, abundant capacity and growing competition from new business models, alternative capital and insurance-linked securities (ILS).
Hence we’ve written at length about the need for insurance and reinsurance firms to, rather than be fearful, embrace change, innovate, leverage new capital sources and new technologies, in order to adapt to changing market conditions and remain relevant.
KBW’s analysts go a step further, saying that standing still and watching the market changing before your eyes can only result in re/insurers being left behind.