London Bridge 2 can be ‘silk road’ to more diverse capital: Lloyd’s CFO
The re/insurance industry must become more transparent and evolve from so-called black box underwriting if it is to attract investors, says Burkhard Keese.
The re/insurance industry must evolve opaque processes and the ‘black box’ of underwriting criteria to make itself more appealing to investors and secure more capital, Burkhard Keese, the chief financial officer of Lloyd’s, believes.
London Bridge 2 represents his play to achieve this, describing the insurance-linked securities (ILS) vehicle as the “silk road between capital and underwriting”.
Keese told Baden-Baden Today that the industry has become complacent in its attitude to attracting new capital, taking it for granted.
A sneak preview: more exclusive content and interviews inside
A sneak preview: more exclusive content and interviews inside
Reinsurers could reap the rewards of ‘goldilocks’ effect
As hard market conditions and atmospheric weather patterns change, reinsurers could be about to enjoy a very favourable environment.
Reinsurers could be about to benefit from a “goldilocks” period as market conditions and levels of catastrophe losses combine in a way that that may result in favourable underwriting returns enduring beyond the upcoming 1/1 renewal.
That is the opinion of Tim Edwards, EMEA head of catastrophe analytics, and David Flandro, head of strategic advisory, at Howden Tiger, who base their opinion partly on the findings of a report by the broker titled “Today’s natural catastrophe portfolio: a balancing act”, published in September.