Daily Insurance Industry News
Daily Insurance Industry News
Monday 19th of February 2018
September 13, 2010

PwC warns on reinsurance divide

by Gill Montia

Story link: PwC warns on reinsurance divide

PricewaterhouseCoopers (PwC) is warning that a divide could be emerging within the global reinsurance markets, on whether a fundamental overhaul of reinsurers’ business models is needed, following the financial crisis.

New research from the accountancy firm suggests a marked difference between how European reinsurers are responding to the crisis, compared to those based in Bermuda or the US.

In a report published today, PwC states the majority of European reinsurers have already begun implementing “substantive adjustments to their strategy”.

However, in the US and Bermuda, most executives questioned said their fundamental business model had not changed as a result of the financial crisis.

PwC partner, Achim Bauer, comments: “The global reinsurance market has proved its resilience but dramatic changes in the global risk landscape mean there are more obstacles and opportunities to come.”

He adds: “Reinsurers need to stand out in the face of limited growth prospects and continued market uncertainty – all while trading at depressed book value.”

The report, which is based on interviews with senior executives of leading property & casualty reinsurers, identifies the biggest threat as “failing to maintain underwriting discipline in an increasingly competitive environment”.

Mr Bauer concludes: “Those companies that focus on strong leadership, anticipating future trends and assessing demand in the evolving global risk landscape will ultimately emerge on top.”


News posted:

Related stories to PwC warns on reinsurance divide: