If reinsurers won’t come ‘down the tower’, how can the industry meet them halfway?
The affordability crisis impacting several lines of insurance has prompted widespread industry discussions about whether reinsurance players have a responsibility to take back more exposure to secondary perils.
Earlier this year, then-CEO of Swiss Re, Christian Mumenthaler, highlighted that it makes sense for primary insurers to be the risk managers of many secondary perils, given that these tend to be local in nature. In an interview with Re-Insurance Business, Aspen Reinsurance CUO John Welch shared his perspective that reinsurers are more likely to “give up a little rate” or alter terms and conditions before dropping their attachment points and picking up these losses.