Current State of the Market - icmif

More documents

Recommendations

Info

Where are we in the market cycle? • Where are we in the market cycle – AM Best “Critically, the market seems poised for a turn” January 2012 – Hardening in response to major losses – … but only spotty increases in loss free territories • Reinsurers under pressure – USD 50 bn of losses to the reinsurance sector in 2 years – Manageable from a capital perspective – Market’s capital remains strong for 2012 • Not a “proper” hard market – No dislocation – Capacity remains available – Little in the way of capital impairment Estimated Market Capitalisation 500 bn 450 bn 400 bn 350 bn • Are we entering an era of “Micro-cycles”? 300 bn – Dependant on line of business – Dependant on geography – Not necessarily industry-wide 250 bn 2007 2007- 2008 2008- 2009 2009- 2010 2010- 2011 2011 16
Reinsurance market cycles Loss of capital Rates Rise Greater profitability New capital attracted Pricing decreases Catastrophes Reserve erosion Underwriting losses Asset impairment Traditional market cycles • Reactive to major market events • High barriers to entry • Multi-year cycles 17
Page 1 and 2: MORO 2012 Current state of the rein
Page 5 and 6: Economic Crisis & Sovereign Debt
Page 7 and 8: Catastrophic losses - Most Costly W
Page 9 and 10: Catastrophic losses Event Loss (USD
Page 11 and 12: Model change • Catastrophe models
Page 13 and 14: ICMIF Solvency II Solutions One Day
Page 15: Where are we in the market cycle? -
Page 21 and 22: Universal qualities of mutuals Comm
Page 23 and 24: Universal qualities of mutuals Unri
Page 25 and 26: What this means for Mutuals Relentl
Page 27 and 28: Addressing these issues • Diversi
Page 29 and 30: Mutual reinsurers • Like minded p
Page 31 and 32: Pooling Risk • Good examples alre
Page 33: MORO 2012 Current state of the rein

Current State of the Market - icmif

Create successful ePaper yourself

Delete template?

Save as template?