AI and quantum computing could transform the protection gap
As an early adopter, Swiss Re is investing significantly in generative AI, but establishing digital trust will be key.
Fundamentally, the cost of producing insurance products remains too high—but this could be transformed by evolving technologies, including generative artificial intelligence (gen-AI) and quantum computing.
This will in the long term allow the industry to automate activities that today require human intervention, look at a significant amount
of data and derive conclusions, and consequently to assess and price risk better. All this could help the industry in closing the protection gap.This is the view of Moses Ojeisekhoba, chief executive officer of Global Clients and Solutions at Swiss Re. An advocate for embracing new technology, he told Intelligent Insurer that gen-AI and quantum computing are very much evolving—and they have the potential to transform parts of the industry.
A sneak preview: more exclusive content and interviews inside
A sneak preview: more exclusive content and interviews inside
Vanishing subscription market means gaps for cedants
Reinsurers are applying terms and conditions specific to their appetites and agendas, says SiriusPoint’s new head of ceded reinsurance.
Demand for property capacity still outstrips supply and new capital is shying away from entering the market. This means a dislocation is again likely in the year-end renewal, forcing both buyers and reinsurers to reshape and recalibrate their portfolios.
That is the view of Habib Kattan, global head of ceded reinsurance at SiriusPoint, who says he expects the property market to continue to be challenging. “We expect a continued dislocation between demand for ground-up and frequency protection, versus supply of high excess catastrophe reinsurance,” Kattan told Monte Carlo Today.
“We have reshaped our inwards property portfolio over the last couple of years with a greater focus on peak peril US catastrophe risk. We will continue to be disciplined, ensuring adequate attachment levels, and tighten contract wordings so that the coverage for the perils offered is adequately priced.
“We are recalibrating our portfolio to continue to provide, and even increase, capacity where we believe the returns are attractive. Our reinsurance-buying strategy will remain focused on managing volatility (earnings protection) and tail risk (protecting capital).”