The chief executive officer (CEO) of one of Bermuda’s largest re/insurers, XL Group, has said that the influx of third party capital should be seen as an opportunity.
Mike McGavick, XL’s CEO, who spoke at the 2014 Brokerslink Global Conference said that alternative capital is not a threat as long as insurers adapt.
He explained that the industry must find ways to adapt and address new challenges such as globalisation and regulation.
“Globalisation and regulation provide us with a challenge when supporting global companies. Increasingly our clients and their risks are not neatly contained in one territory, governed by one regulator; any company trading over the internet has a global exposure.
“But we must find a way to respond to new exposures and overcome the challenges, because it’s only going to get tougher and not delivering is not an option.
“Supported by analytics and our deep understanding of risk, we must be adaptive in finding ways to use this capital to cover the long list of new and increasingly technology related risks to respond to the unmet needs of a global economy,” he said.
“Being adaptive is key to survival. As brokers in a market with high levels of consolidation, you know this all too well. That is why Brokerslink, as one of the largest groups of independent insurance brokers in the world, is so important to the continued health of the market. We recognize that this alliance has, at its heart, a solution centered approach and that’s why I am here. Today Risk Managers and their boards are looking to you, their brokers and us, the underwriters, for answers. And here lies our opportunity, let’s take it.”