Life reinsurers must adapt to cedents’ needs
Thursday, 11 01 2018, Category: Insurance and Reinsurance, Country: World
The life reinsurance sector has been shrinking for a number of years, but reinsurers can remain relevant if they take a more strategic approach to adapting to the changing needs of cedents, according to David Rains, Managing Director at Guy Carpenter.
Rains claimed that the traditional life reinsurance proposition, which involves bundling together a combination of risk capital, differentiated underwriting knowledge and a variety of value-added services, no longer aligns with what customers want and is vulnerable to disruption.
“The widespread availability of capital and insurers’ success in closing their knowledge gap in underwriting expertise have reduced their need to purchase risk protection,” he explained.