- Cyberattacks cost financial services firms more to address and contain than in any other industry according to new Accenture report
- Beazley 2018 Breach Briefing report analyses and advises on growing range of cyber risks in the US
- Insurance Europe responds to IAIS consultation on an activities-based approach (ABA) to systemic risk
- RSA UK claims function awarded CII Chartered status
- LMA introduces Claims Development Pathway, a new interactive training and development tool
- FCA seeking views on how technology can make it easier for firms to meet their regulatory reporting requirements
- S&P Global Ratings and Guidewire Cyence Risk Analytics partner to assess cyber risk expired
- IRM Internal Model Industry Forum(IMIF) publishes eighth guidance document for the insurance market-The Journey from Model Validation to Model Risk Management expired
- Legal & General partners with Slice Labs to offer on-demand homeshare insurance proposition expired
- Zurich launches UK Innovation Foundry expired
- Aegon net income more than doubles in fourth quarter as US tax reform leads to one-time tax benefit expired
- Chaucer DAC joins IUA expired
13th September 2017
Swiss Re sees growing demand for new reinsurance solutions
Swiss Re sees growing demand for new reinsurance solutions that help clients manage their portfolios and expand into new segments and markets. Technological advancements are ushering a new generation of industry solutions that use technology to better understand, manage, and ultimately reduce risks. Swiss Re is responding to growing client demand by developing new solutions and services across the value chain. A new offering of ready-to-use, scalable solutions allows insurers to offer the products and services end-customers need. Swiss Re expects prices to stabilise due to recent loss events.
Christian Mumenthaler, Swiss Re's Group ceo comments "Insurers are rethinking their business models to tap into new opportunities and better service the end-consumer. The reinsurance industry can help them with ready-to-use services and solutions that address growth and profitability. At the same time, innovative solutions help the industry make progress towards closing the ever-growing global protection gap. As we have seen again in the aftermath of recent floods in the US following Hurricane Harvey, as well as devastating flooding in Bangladesh, India, and Nepal, the protection gap is very real and needs to be tackled with solutions that make insurance both more widely and more easily available."
Each year, losses from large natural catastrophes and extreme weather place a heavy burden on local economies. In 2016 alone, protection gaps attributable to natural catastrophes and weather events amounted to $180bn worldwide, according to estimates by the Swiss Re Institute.
Several issues contribute to this situation in both mature as well as emerging markets, including a lack of awareness or trust, restricted access to appropriate cover, and concerns over affordability of policies.
In-depth risk research paired with new technology can help the industry develop more efficient and impactful solutions to tackle these issues and close global protection gaps, while at the same time open new market opportunities for insurers.
The industry is undergoing substantial change, making growth and technological transformation a priority. Swiss Re is harnessing new technologies to support societal and economic progress, while building up capabilities and risk knowledge. Swiss Re's client franchise model, which facilitates detailed understanding of the risk needs of our clients, underpins this development.
Already today, Swiss Re offers a number of technology solutions to its clients, including a machine learning-based pricing platform to accurately price risks and enable automated claims payments. This platform can be leveraged for multiple parametric insurance products, such as those covering earthquakes or delayed airline flights.
Swiss Re also offers tools to clients that help understanding accumulation risk and supports portfolio steering of a client's own insurance liabilities. These tools provide a visualisation of the client's business, in particular of the nature, volume and trends of a client's risk profile. Additionally, these tools enable clients to more easily compare risk profiles across portfolios and markets.
In the Life & Health Reinsurance space, a solution that has already been in action for a number of years is Magnum, Swiss Re's Life & Health automated underwriting tool. In 2016, the tool processed millions of individual life and health applications, helping insurers, and ultimately the end customer, buy insurance in a more straightforward way.
Technology also supports improved underwriting and increased efficiency. Swiss Re continues to develop and accelerate its activities in digital innovation. The Blockchain Insurance Industry Initiative, better known as B3i, is an example of such efforts.
B3i is piloting digital back office processing using a Property NatCat XoL contract. If successful, Blockchain would bring efficiency gains in transaction and contracts processing by simplifying steps and eliminating paperwork. The cost savings from the reduced administration would benefit all involved–especially the end-consumer.
The challenging industry environment, marked by low interest rates and excess capital, continues to put pressure on both primary insurers and reinsurers. Swiss Re intends to maintain its underwriting discipline to preserve long-term sustainability, which will continue to make Swiss Re a reliable partner for its clients.
In Property, Swiss Re expects prices to stabilise due to recent loss events. In Casualty, Swiss Re expects pricing corrections to reflect recent loss trends. In Specialty lines, Swiss Re expects price trends to vary, depending on market and class of business.
Swiss Re Trends(648 articles)