NEWS
The change at SCOR is bearing fruit
The main challenge now is adapting to the new risk landscape and anticipating trends.
“We are seeing an increasing impact of the so-called secondary perils, and we have seen that in my areas, and also significant events last year in France with hailstorms. This year there were large events in Italy, with floods and hailstorms.”
This was the view of Maria Brohmi, chief underwriting officer, France, BeLux, Italy & Iberian Peninsula, treaty P&C at SCOR, when asked about the challenges ahead for SCOR and the wider industry.
She continued: “Each time we talk about exceptional cat events never seen in the past, but we see this increasing trend of these secondary perils.”
This is part of a changing environment where risks are expanding, she added. “The main challenge for me is to adapt to the new risk landscape, to anticipate trends.”
Another example is that given the current geopolitical environment, with a lot of uncertainties, SCOR is looking more carefully at certain risks, such as strike, riots and civil commotion (SRCC).
“For example, we had riots in France this year. In terms of amount, it wasn’t huge with data you can compare to large cat events, but that makes us more sensitive to this risk.
“It can occur in all countries, including what we call mature or developed countries. So that’s a risk we see more and that we need to carefully manage,” she said.
Cyber risk is also on Brohmi’s radar—and it can arise in combination with other risks. “In terms of accumulations, we need to understand better what we are exposed to,” she commented.
“Our business is to take, manage and cover the risk.”
Maria Brohmi, SCOR
“Generally, we can say that we have an expanding universe of risks, but this is also an opportunity, because our business is to take, manage and cover the risk. Where we see risk is expanding, that creates opportunities for us as a reinsurer to accompany our clients in viewing these risks, understanding, measuring and covering them.”
Commenting on SCOR’s past and present performance she said that after several years of underperformance, “the last year being the worst one”, the reinsurer is satisfied to see that the actions taken to restore profitability are “bearing fruit”.
“There are a few months to go until the end of the year, but we are more comfortable with the shape of our portfolio today than we were one year ago.”
Last year’s negotiations covered a lot around structures and prices, she said. And while these things remain important this year, SCOR is looking at what underlying risks it has and making sure the reinsurer understands them really well.
As well as closely considering the risks SCOR is taking and the nature of the risk, Brohmi said the company is looking at wordings.
“It’s a combination of underlying portfolio, understanding the risks, having the structures adapted to the risks we are taking and adapted to our risk appetite, and having clarity on the wordings. Wording is being discussed more but maybe not enough because there is still a lot to do on that,” she said.
“It’s important because you can have a high price for something, but if you don’t know exactly what you’re covering, plus or minus 10 percent on the price will not make the difference when you have the loss.”
Main image: Shutterstock / Mark_Kostich
