Changing reinsurance market conditions favor mutual insurers, says
LONDON, UK, April 15, 2013 . Mutual insurers have found themselves in a prime
position to capitalize on changes in the traditional reinsurance market, according to
Willis Re, the reinsurance broking arm of Willis Group Holdings (NYSE: WSH).
The recent 1st View April 2013 Renewals Report released by Willis Re found that
changing distribution models, coupled with a flood of alternative capital, have left
many reinsurers concerned over both their existing portfolios and their access to
This provides mutual insurers with the perfect opportunity to strengthen their existing
relationships with traditional reinsurers and to forge new ones.
Robin Swindell, Executive Vice President of Willis Re, commented: “Traditional
reinsurers are very aware that while some larger commercial buyers are reducing
their use of reinsurance in this phase of the reinsurance cycle, mutual buyers value
long-term sustainable relationships throughout the entire cycle.
“This is the perfect time for mutuals to demonstrate that they are reinsurers’ preferred
Mutual insurers have a unique ownership structure where policyholders, not external
shareholders, are the ultimate owners. This means they have less access to other
forms of capital, and as a result, mutual insurers are often heavily reliant on
reinsurance to provide them with additional capital to deal with catastrophes and
John Haydon, Executive Vice President of Willis Re, commented: “Mutual insurers
are in business for their members for the long term and should receive the
recognition they deserve from reinsurers. Like mutuals themselves, reinsurers should
never leave their loyal customers in the lurch.”
John Cavanagh, Chief Executive Officer of Willis Re, commented: “Seismic changes
occurring in the traditional reinsurance market are clearly favorable for mutual
insurers. Willis Re has always been a strong advocate of the long-term business
models characterized by mutual insurers, and will continue to provide analytical and
transactional support to our clients in this important market.”
Click here to access the full 1st View April Renewals Report.
About Willis Re
One of the world's leading reinsurance brokers, Willis Re is known for its world-class
Analytics capabilities, which it combines with its Reinsurance expertise in a
seamless, integrated offering that can help clients increase the value of their
businesses. Willis Re serves the risk management and risk transfer needs of a
diverse, global client base that includes all of the world's top insurance and
reinsurance carriers as well as national catastrophe schemes in many countries
around the world. The broker's global team of experts offers services and advice that
can help clients make better reinsurance decisions and negotiate optimum terms. For
more information, visit www.willisre.com.
Willis Group Holdings plc is a leading global risk advisor, insurance and reinsurance
broker. With roots dating to 1828, Willis operates today on every continent with more
than 17,000 employees in over 400 offices. Willis offers its clients superior expertise,
teamwork, innovation and market-leading products and professional services in risk
management and transfer. Our experts rank among the world’s leading authorities on
analytics, modeling and mitigation strategies at the intersection of global commerce
and extreme events. Find more information at our website, www.willis.com, our
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