Alternative capital is a misleading name given how integral to the market ILS capital has now become, according to Kevin O'Donnell president & CEO of RenaissanceRe Holdings.
In a presentation at Convergence 2019 called Resilience, Misperception and Opportunities, O'Donnell said: “When I think about what a company looks like to be successful in this business, it’s bringing all forms of capital to all forms of risk.”
According to the World Economic Forum, some of the biggest risks to society at the moment include cyber, natural disasters, extreme events and failure to mitigate climate change. O’Donnell said these are all risks the industry is well positioned to cover.
He insisted the industry is putting its resources towards the biggest risks currently facing society, but admitted there is a lot more it needs to do.
There is a measureable change taking place with regard to climate change, he added, with winter storms being more intense and inland flooding becoming worse. Storm surge in hurricanes will get worse due to rising sea levels, while wildfires will be affected by drier conditions from climate change, he said.
O'Donnell also said the protection gap is increasingly important, calling on the industry to work hard to close it.
Kevin O'Donnell, RenaissanceRe Holdings