COVID-19 has presented a monumental challenge to countries and businesses everywhere. Bermuda:Re+ILS spoke to the heads of five institutions representing Bermuda’s re/insurance community to find out how the industry has coped.
There has been plenty of talk about a new normal emerging out of the current crisis, but this underplays the scale of the digital transformation that is currently under way, say Jonathan Prinn at BGC Partners and Chris Bonard at Ed Bermuda.
While re/insurers of all types face challenges in the aftermath of COVID-19, there are certain strategic priorities that will apply to all, according to PwC’s latest report, as Arthur Wightman of PwC explains.
There is an unwavering desire for alpha, for uncorrelated returns and for new ways of deploying capital. As markets and perspectives evolve, there are different ways to think about how capital can be used, says Ocorian’s Alison Dyer.
Digital innovation has become the norm in many industries around the world, but the COVID-19 pandemic has expedited the urgency to move to digital and, out of necessity, has pushed many companies into it much faster than expected, says Chris Maiato of EY.
The unprecedented nature of the COVID-19 pandemic and its economic impact make it very difficult for re/insurers to measure the risk in their mortgage portfolios, say AM Best’s Emmanuel Modu and Michelle Li.
Despite high systemic market pressures, investors continue to be attracted by the features that have established ILS as a highly desirable asset class: its liquidity and low correlation to the broader financial markets, as Anna Pereira, head of overseas markets and promotion at ILS Bermuda, and director at MANA Consulting, explains.
Next to the impact of COVID-19, climate change is arguably the fastest-growing concern for the re/insurance industry. Andy MacFarlane of AXA XL discusses re/insurers’ top concerns and innovative ways to address the risks with Bermuda:Re+ILS.
Konrad Rentrup founded Hannover Re Bermuda and carefully steered the operation for just short of 20 years. Following his retirement in July, he reflects on his proudest achievements during almost two decades at the helm—and the greatest challenges he faced. Bermuda:Re+ILS reports.
From super low interest rates to rapid technological innovation, the re/insurance industry faces challenges on all sides. The time is right to create a real secondary market for insurance, Akinova’s Dennis Mahoney tells Bermuda:Re+ILS.