Welcome to Monte Carlo Today
The Rendez-Vous de Septembre in Monte Carlo may have been cancelled for the first time—due to COVID-19—but the re/insurance industry has long and proud traditions. For more than 60 years, executives have travelled to Monte Carlo in September to start the process of negotiating the year-end renewals.
Despite there being no event, that same ritual will take place this year—in a virtual setting.
Press conferences and roundtables are going ahead; and senior executives are giving interviews putting their markers down in terms of their expectations for changes in rates and terms and conditions.
On this basis, we are publishing our Monte Carlo newsletter Monte Carlo Today—usually distributed live at the event—as we have always done.
We will interview senior executives, attend the virtual events and ensure our readers have their finger on the pulse of the industry at this critical and unprecedented time.
We hope you find the content in the following pages as useful and insightful as you have always done. We miss seeing the industry face to face as well, but we will still do what we have always done: report on the most important events, news stories, opinions and debates to keep our readers informed and ahead of the game as they make decisions.
Wyn Jenkins, managing editor, Intelligent Insurer
A sneak preview: more exclusive content and interviews inside
Sirius-Third Point merger solves uncertainties at both as execs welcome onset of hard markets
The arrival of the first hard market in almost 20 years may test less experienced executives, but more experienced underwriters will enjoy re-finding their “muscle memory” of how to navigate such challenging conditions, Dan Malloy tells Monte Carlo Today.
That is the view of Dan Malloy (pictured), currently the chief executive of Third Point Re and soon to become a senior underwriting executive in SiriusPoint when the $788 million merger between his business and Sirius Group closes.
The combined entity will be led by Sid Sankaran, the former chief financial officer and chief risk officer of AIG who has been on Third Point Re’s board since August 2019.
Malloy told Monte Carlo Today that he is excited about the prospect of the two companies combining, creating a larger capital base and combining what he calls complementary portfolios in the process, especially at a time when the market is turning and rates are hardening across the board.
“We have started working on integration and getting to know one another and I am very excited that Sid, with his operating experience at AIG, has agreed to take the reins,” Malloy said.
“I will be focusing on underwriting and this is a very exciting time to do that. This is my third or fourth hard market and the muscle memory of how to handle these conditions is still there, so I am looking forward to using my experience to add value.”
A sneak preview: more exclusive content and interviews inside
A sneak preview: more exclusive content and interviews inside
Buyers who can differentiate themselves may dodge harsher rate hikes
Those with a better performance will be in a better position to negotiate, Krista Bonneau of Arch Insurance International, told Monte Carlo Today.
Bonneau (pictured) stressed that, while it is clear that rates will increase, the extent across different lines remains to be seen. As such, buyers will be manoeuvring in an attempt to seek the best deals.
“Over the course of 2020 we have seen upward pressure in the reinsurance market,” she said.
“All the signs suggest that this is likely to continue but there is still uncertainty as to exactly what the market will look like at January 1, 2021.
“We are also seeing strong upward movement on the primary side of the business which will have a positive impact and create opportunity.
“With the transitioning market, cedants will look to differentiate themselves from their peers. Those who can clearly articulate their strategy, backed by supportive data and a proven track record, will be in the strongest position.
“It is important to start renewal discussions early and to establish clear objectives and understanding around net appetite.”
