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Interest in Alternative Solutions Surges as Market Shifts Spark Demand for New Approaches

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“In a rapidly changing market landscape, the interest in exploring alternate solutions has surged as businesses strive to stay ahead of the curve and adapt to new challenges.”

In a recent symposium hosted by Guy Carpenter, industry experts gathered to discuss the surge in demand for alternative solutions in the reinsurance market. The symposium focused on how buyers are adapting to challenging market conditions and how the upward trend in pricing is creating opportunities for alternative structures to meet capacity needs and attract fresh capital.

Laurent Rousseau, the CEO of Guy Carpenter EMEA and Global Capital Solutions, provided an overview of the reinsurance market and highlighted the factors that led to a significant shift in rates on January 1, 2023. He emphasized the importance of alternative capital and reinsurance structures in meeting clients’ risk demands and managing severity rather than frequency.

Thierry Léger, the CEO of SCOR, discussed how alternative structures have become integral to SCOR’s strategic approach and their value in enhancing capital management solutions. He stressed the need for tailored solutions that optimize capital management for clients.

Eveline Takken-Somers, the lead portfolio manager at PGGM, outlined the company’s strategy regarding Insurance Linked Investments. She emphasized the importance of aligning interests between investors and reinsurers and the need for alternative capital to yield sustainable returns.

Burkhard Keese, the CFO of Lloyd’s of London, highlighted the success of the London Bridge 2 vehicle in improving market accessibility for the investment community. He also addressed the need for greater transparency and efficiency in the commercial insurance industry, particularly in dealing with challenges like the transition to net zero.

Overall, the symposium shed light on the growing interest in alternative solutions in the reinsurance market. As market conditions continue to evolve, it is crucial for industry stakeholders to align their interests and deliver value to insurers and insureds. Alternative structures and capital can play a significant role in meeting these demands and driving sustainable returns.

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