Using softer market conditions to strengthen catastrophe protection

As market conditions soften, European insurers have an opportunity to go beyond rate reductions and secure catastrophe protection that better reflects their underlying risk exposures.

“The conversation has moved beyond price. Rates have fallen materially from their peak, and reinsurers remain very well capitalised and profitable. So, cedants are increasingly looking at how to extract the best value from current market conditions.”

In a recent interview with Intelligent Insurer’s Baden-Baden Today, Tobias Andersson, Head of Continental Europe at Howden Re, discusses how cedants can use favourable market conditions to address elevated retentions, improve net loss positions and explore aggregate protection.

With repeated losses from flood, hail, wildfire and windstorm continuing to affect insurers’ earnings, Andersson emphasises the importance of taking a more strategic approach to reinsurance purchasing.

“Now is the time to lean in, not lean back. Resilience is best built before it’s tested.”