Insurers around the world have become increasingly sophisticated in managing their capital and risks.
Consolidation, evolving solvency regulation and the spread of enterprise risk management are driving a trend of centralized reinsurance buying by insurance companies and large corporations, tailored to enable growth and steer group-wide risk appetite across all types of risks.
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Strategic reinsurance programs are customized to provide more efficient risk protection, and to help insurers optimize their capital structures in order to improve capital returns and minimize capital costs. Increasingly, reinsurance is integrated into insurers’ long-term strategy and growth plans. Challenging circumstances, such as a mergers and acquisitions, changes in regulatory regimes, or market dislocations, require event-specific solutions.
Structured protection and risk transfer solutions are tailored to increase the efficiency of re/insurance programs by combining multiple risks and/or interdependent triggers. As part of an integrated enterprise risk management process, risk transfer is focused on the joint distribution of all risks. Another aspect is the integration of alternative capacity in order to provide large lines of catastrophe capacity.