Insurance Business Global 100 2021
Accolade
Reinsurance no longer just a ‘shock absorber’
This year’s conference circuit has spotlighted key trends shaking up the insurance industry. From the growing impact of data and AI to rising losses from extreme weather, carriers are increasingly focused on safeguarding their portfolios while staying ahead of rapid innovations.
The result, according to Monica Ningen, Swiss Re’s CEO of US P&C reinsurance, is an increased demand for reinsurance, “particularly for property risks in areas with intensifying Nat Cat (natural catastrophe) exposures.”
This demand is driven by higher property values, urbanization, inflation, and rising construction costs, especially in high-risk catastrophe areas, said Ningen.
One of the key themes that has emerged from her engagements with clients in the US is the shift in the primary policy landscape. Beyond rate increases, there’s a focus on exposure management, policy limits, deductibles, and even implementing actual cash value on roofs.
At the same time, carriers are working closely with insureds to verify that homes remain insurable.
“Insurers are having productive discussions with agents and policyholders about roof age and insurability, which I believe will lead to a healthier market, particularly in the regional and mutual space,” said Ningen.
The second theme is around data and technology. There is a growing reliance on reinsurers, Ningen observed, for enhanced data and technology solutions.
For the US specifically, several issues have gained global attention. One of these is the litigation environment. Aggressive litigation has caused significant losses for the insurance industry, particularly in the commercial casualty sector.
The numbers are sobering, with 27 court cases awarding over $100 million each in compensation in 2023 alone, according to Swiss Re data.
This surge in litigation, often driven by social inflation, is leading insurers and reinsurers to carefully manage their capacity in the market. Social inflation, which refers to the rising costs of claims that outpace economic inflation, is expected to continue growing. Swiss Re data shows social inflation in the US rose to 7 percent in 2023, a 20-year high, driven by litigation costs from mega-jury awards.
“Over the last five years, losses in the US commercial casualty insurance sector have grown at an average annual rate of 11 percent, reaching $143 billion in 2023,” Ningen said. “To put that in perspective, this is 33 percent more than the insured losses from global natural catastrophes last year.”
Staggering losses have made re/insurers rethink the capacity they deploy in this market, with many managing limits and being cautious with the coverage they offer. But while rates are going up, they are not keeping pace with the rapidly rising costs of claims, which adds pressure to both the primary and reinsurance markets.
In addition to litigation, secondary perils – such as tornadoes, hail, and wildfires – are another issue receiving heightened attention. While often referred to as “secondary,” these perils have become a primary concern in the US, with the country bearing the brunt of global losses.
Amid the rising need for reinsurance solutions, Swiss Re’s value proposition stems from two key factors: financial strength and global diversification.
Financial strength allows Swiss Re to absorb losses and maintain solvency, while global diversification helps spread exposure across various geographies and lines of business, deepening our insights into the broader risk landscape, Ningen explained.
Beyond acting as a “shock absorber,” Swiss Re is also addressing the protection gap: the difference between economic and insured losses, which reached $172 billion for natural catastrophe events last year.
“Since 2011, our public sector solutions team has completed over 1,400 transactions in 80 countries, addressing disparities in insurance coverage globally,” Ningen said.
Additionally, Swiss Re has committed to data-driven decision-making. “We invest heavily in technology, like our partnership with Google X on wildfire modelling and tools such as CatNet, which we license to insurance partners to better manage and understand risk,” continued Ningen.
“Lastly, as a global reinsurer, we have unique insights into trends like extreme weather events, rising jury awards, and cyber threats. These insights help us engage in more meaningful collaborations, optimize reinsurance structures, and explore innovative risk-sharing solutions.”
To successfully tackle all the opportunities and challenges, however, industry partnerships will be key. Ningen sees a market where relationships “continue to matter.”
“Partnerships are important as we navigate through the uncertainties that are showing up in the world, and I feel appreciative of the collaboration and the business relationships that we have with our clients here in the US,” she said.
In the first half of 2024, severe convective storms caused $60 billion in insured damages worldwide, with 70 percent of those losses stemming from the US, according to Swiss Re.
The good news is that the industry’s understanding of these risks is constantly evolving, especially as new data becomes available.
“Many companies are talking about how they’re improving the data they collect, data that might not yet be fully utilized by current models, and exploring the intersection of technology with data and other (modelling) techniques we’ve used in the past,” Ningen shared. “At Swiss Re, for instance, we’ve discussed our partnership with Google X on wildfire modelling, leveraging new approaches to enhance our capabilities.
“Ultimately, it’s about the industry’s evolving understanding of an evolving peril, and its ability to monitor, control, and model it.”
Spotlight
The importance of good data extends to all areas of the insurance value chain. Insurers are now focusing on updating their policy administration systems and adopting new ways to collect and analyze vast amounts of data. The power of enhanced modelling tools, driven by up-to-date data, is essential for understanding a rapidly changing risk landscape.
The role of reinsurance is evolving to respond to all the challenges that primary insurers face.
“Reinsurance is no longer just a financial shock absorber,” Ningen said, echoing words from Re’s CEO of P&C reinsurance, Urs Baertschi. “We’re a partner across the entire spectrum of risk awareness, risk management, and risk transfer, with our broad suite of products, our global reach, our expertise, and our tools.”
Swiss Re is one of the world’s leading providers of reinsurance, insurance, and other forms of insurance-based risk transfer. Through our work with clients, we fulfill our vision of helping to make the world more resilient.
Our mission: Together, we apply fresh perspectives, knowledge, and capital to anticipate and manage risk.
That’s how we create smarter solutions for our clients, helping the world rebuild, renew, and move forward.
We are an inclusive organization of diverse talents. Collaborating across the globe, we apply our unique perspectives and know-how as one Swiss Re to make the world more resilient.
Company Profile
82%
employees who agree that Swiss Re provides an inclusive work environment
82%
employees who feel Swiss Re cares about their health and well-being
$3.2B
FY 2023 net income
87%
employees who feel supported with new and effective technologies
$38.5B
FY 2023 P&C premiums earned & fee income
Bio
Spotlight
Milestones
Media
Accolades
Company Profile
Years in the industry
27
Recognition
One of Reuters 20 Trailblazing Women in Insurance
Favourite quote
“Everything you can imagine is real”
Monica Ningen
CEO, US P&C Reinsurance at Swiss Re
Swiss Re’s Monica Ningen reflects on current challenges and opportunities that insurers face, and how the role of reinsurance has evolved in response
Read on
[We see a higher demand for reinsurance], “particularly for property risks in areas with intensifying Nat Cat exposures”
Monica Ningen,
Swiss Re
Share
Karen Adams
President and CEO at Fundserv
Before becoming CEO of Fundserv, Karen Adams held a variety of leadership roles around the world – and she learned that listening and understanding are key to both providing service and developing talent
Read on
Share
Share
Karen Adams
President and CEO at Fundserv
Career highlight
Before becoming CEO of Fundserv, Karen Adams held a variety of leadership roles around the world – and she learned that listening and understanding are key to both providing service and developing talent
Read on
IN Partnership with
Litigation, secondary perils putting pressure on re/insurance markets
How is Swiss Re addressing the current challenges?
Published November 4, 2024
Find out more
Find out more
Contact Us
Specialty
Best in Insurance
Resources
Risk Management
TV
News
US
Copyright © 2024 KM Business Information US, Inc
RSS
Sitemap
Contact us
About us
Conditions of Use
Privacy policy
Terms & conditions
People
Contact Us
Specialty
Best in Insurance
Resources
Risk Management
TV
News
US
Copyright © 2024 KM Business Information US, Inc
RSS
Sitemap
Contact us
About us
Conditions of Use
Privacy policy
Terms & conditions
People
Contact Us
Specialty
Best in Insurance
Resources
Risk Management
TV
News
US
“We’re a partner across the entire spectrum of risk awareness, risk management, and risk transfer, with our broad suite of products, our global reach, our expertise, and our tools”
Monica Ningen,
Swiss Re
The carrier landscape is evolving – and so is reinsurance
*all figures are Swiss Re companywide
According to 2023 Employee Engagement Survey:
–Pablo Picasso
2023 to present
2018–2023
2014–2018
2006–2014
2004–2006
2004
2004
GE Insurance Solutions senior vice president, Six Sigma Master Black Belt
2004–2006
GE Insurance Solutions catastrophe risk management leader
2006–2014
Swiss Re senior vice president, US regional & national property desk head
2014–2018
Swiss Re managing director, chief property underwriter for US & Canada
2018-2023
Swiss Re CEO & president – Canada & English Caribbean
2004
GE Insurance Solutions senior vice president, Six Sigma Master Black Belt
2023
to present
Swiss Re CEO US P&C reinsurance
Milestones
“Insurers are looking for reinsurance solutions that can help manage capital volatility and support growth, especially in sectors like renewable energy and construction,” she said.
2004
2004
–2006
2006
–2014
2014
–2018
2018
–2023
2023 to present
2004
GE Insurance Solutions senior vice president, Six Sigma Master Black Belt
2004–2006
GE Insurance Solutions catastrophe risk management leader
2006–2014
Swiss Re senior vice president, US regional & national property desk head
2014–2018
Swiss Re managing director, chief property underwriter for US & Canada
2018-2023
Swiss Re CEO & president – Canada & English Caribbean
2023
to present
Swiss Re CEO US P&C reinsurance
Milestones
2024
2004
–2006
2006
–2014
2014
–2018
2018
–2023
2023 to present
GE Insurance Solutions senior vice president, Six Sigma Master Black Belt
2024
GE Insurance Solutions catastrophe risk management leader
2004 –2006
Swiss Re senior vice president, US regional & national property desk head
2006–2014
Swiss Re managing director, chief property underwriter for US & Canada
2014–2018
Swiss Re CEO & president – Canada & English Caribbean
2018-2023
Swiss Re CEO US P&C reinsurance
2023
to present
Milestones
Copyright © 2024 KM Business Information US, Inc
RSS
Sitemap
Contact us
About us
Conditions of Use
Privacy policy
Terms & conditions
People