Local market competency invaluable to smaller reinsurers
Tuesday, 11 24 2015, Category: Insurance and Reinsurance, Country: World
Being able to entertain large business lines and influence transactions in testing times has driven reinsurance industry consolidation, as global players look to increase in size, says A.M. Best’s Robert DeRose, but that doesn’t mean smaller reinsurers can’t be meaningful.
“I think size is really a relative issue. If you want to be a truly global reinsurer providing capacity to some of the industry leaders, then I would say that size is certainly an important strength to have,” said DeRose, Vice President of Reinsurance Ratings at financial services ratings agency, A.M. Best.
“But that doesn’t necessarily preclude small players from being competent players in the market,” he added.