Alternative capital forced reinsurers to adapt
Saturday, 11 21 2015, Category: Insurance and Reinsurance, Country: World
The persistent inflow of alternative reinsurance capital in the overall market has created a competitive environment that forced traditional players to adapt to survive, but it’s important for market players to continue the path of evolution, particularly in emerging risks and markets.
Benign loss activity, a supply demand imbalance underlined by ample capacity and heightened competition from third-party backed capital, has driven widespread industry consolidation and change as reinsurers attempt to navigate challenging operating conditions.
But while the rise and expansion of the insurance-linked securities (ILS) market brings notable pressures and challenges to traditional reinsurance players, it has also forced firms to adapt their business and investment approaches to remain relevant to clients and the marketplace.