Alternative capital to compress reinsurance cycle
Wednesday, 11 18 2015, Category: Insurance and Reinsurance, Country: World
The presence and growing reach of alternative capital in the global reinsurance sector won’t result in a market without cycles, but will lead to compression, where the peaks and troughs will be much less dramatic, according to Willis Re Chairman, James Vickers.
“I don’t see the market as ceasing to be cyclical, but I do see that the cycles will be dramatically compressed,” said Vickers, during a discussion at A.M. Best’s 2015 Insurance Market Briefing, Europe, held in London recently.
With the influx of alternative capital persisting, albeit at a slower pace in recent months than previously witnessed, the resulting larger pool of overall, global reinsurance capital could see large losses more easily absorbed.