Reinsurers as gatekeepers of risk: AM Best
Monday, 01 18 2016, Category: Insurance and Reinsurance, Country: World
As the convergence of global reinsurance and capital markets continues apace, some traditional reinsurers are adapting to become the “gatekeepers of insurance risk,” according to A.M. Best.
As the gatekeepers of insurance risk, rating agency A.M. Best says that it expects some traditional reinsurance firms will become increasingly adept at managing the risk share and their alignment with alternative forms of capacity and the insurance-linked securities (ILS) market.
This has been developing for some years, but at the end of 2015 the importance of an efficient source of underwriting capital, that can augment and lower the cost of your own capacity, is clearly becoming an essential element of a traditional reinsurance strategy.