Beyond rate cuts: building stronger reinsurance programmes through innovation

A cheaper reinsurance programme isn't necessarily a better one.

As market conditions soften, insurers have an opportunity to reinvest savings into stronger protection, rethink retentions and explore new structures that better respond to catastrophe losses.

“The question is what the programme does in a bad year, not what it costs in a good year,” says Lars Nelson, Managing Director, Head of Germany at Howden Re.

Christian Schaer,  Head of Switzerland, at Howden Re shares this perspective: “Our ambition is not just to help clients achieve a good renewal. It is to help them build a programme that remains effective when the next unexpected event occurs.”

Alexander Roth, Managing Director, Head of Alternative Solutions at Howden Re International, also highlights the importance of diversifying capacity: “Clients who diversify their panels now will be better prepared when capacity tightens as the market will turn again.”

In a recent interview with Intelligent Insurer’s Baden-Baden Today, they discuss how innovation, alternative capital and more tailored reinsurance structures can help insurers move beyond rate reductions and build greater resilience.