ROUNDTABLE: LIFE AND LONG-TERM RE/INSURANCE
TO WHAT EXTENT ARE MACROECONOMIC FACTORS, INCLUDING INFLATION, A CONCERN?
“It’s important we maintain our international recognitions.”
Martin Laframboise
Martin Laframboise: In terms of other important aspect, it’s important we maintain our international recognitions to ensure the success of the life sector.
Mike White: The risk is one of uncertainty, especially around things such as tax. If there’s real clarity around what the rules are, Bermuda will adapt and still have a thriving industry. The risk is you could end up with uneconomic outcomes that are just not sensible.
Ahwaz Chagani: There’s socioeconomic unrest in certain parts of the world. There are geopolitical situations playing out which make certain jurisdictions unattractive for re/insurance. Stability has become a huge factor. >>>
“The risk is one of uncertainty.”
Mike White
<<< Increased protectionism and regionalisation are a risk, as are changes to tax rules. Tax certainty and geopolitical stability would help.
Also, capital is becoming more expensive. You touched on inflation. If you’re a company focusing on third party flow business, that’s dependent on how much consumers are going to spend on insurance which is essentially a function of their overall budget. I like to think of adversity as an opportunity. Even a recession unlocks opportunity. But I think market volatility is my main short-term concern.
“We need to communicate, share and educate more.”
James Claxton
Laframboise: The economic forward-looking inflation is another concern as ultimately the policyholder is the one buying insurance products and it’s important to maintain the cost affordable to bridge the protection gap.
James Claxton: We need to communicate, share and educate more, as well as link to these other global organisations. We need to work out how we educate appropriately.
“It’s important to get people through the door.”
Brad Adderley
Brad Adderley: I’m concerned about talent. In every paper there are references to companies trying to keep talent, buying talent. It’s a worldwide issue.
For me, it’s important to get people through the door, and give them a good experience. I think we will see additional vehicles raising additional capital, which means the need for more talent. If we can attract the talent, and keep them here, that is almost the crux of it all.
It’s the circle of life. If we can get the right talent, if we can hire enough actuaries, the deals will flow and the sector will grow.
Image courtesy of Shutterstock / Natalia Burnina