(Re)insurance industry committed to progress through partnership and innovation

London, 20 October 2024 - Each stakeholder within the (re)insurance ecosystem should have a clearly defined role if the industry is to remain resilient in response to the growing systemic risk potential, according to Laurent Rousseau, CEO, EMEA and Global Capital Solutions, Guy Carpenter, a leading global risk and reinsurance specialist and a business of Marsh McLennan (NYSE: MMC), speaking ahead of the Guy Carpenter Baden-Baden Reinsurance Symposium.

Echoing the theme of the Symposium - "Partnering through crises, shocks and cycles", Mr. Rousseau said: "Crises, shocks and cycles are an integral part of the reinsurance industry. Insurers and reinsurers have always found balance through establishing synergetic relationships. While these relationships have evolved over time, innovation and the market's drive for efficiency have ensured a strong and resilient industry. As the systemic nature of risks such as cyber and climate change becomes more evident, however, we must clearly distinguish the role of each stakeholder-insureds, (re)insurers, capital markets and governments-to maintain balance."

Roland Oppermann, Member of the Board, SV SparkassenVersicherung, and one of the speakers at the symposium, said: "Taking into account the significant and diverse challenges of the future related to climate change, cyber risks, and geopolitical tensions trustworthy partnerships between primary insurers, reinsurers, and retrocessionaires are becoming increasingly important. However, true partnership requires developing a strategy that enables all parties to plan for the long term. I firmly believe there is a need for an innovative and collaborative approach to ensure this across the entire risk transfer supply chain."

Maria Rapin, CEO, Nephila Climate, highlighted the increasing role of alternative capital in the market's ability to absorb the financial impacts of expanding crises. "The reinsurance industry has demonstrated its resilience time and again throughout crises, shocks and cycles," Ms. Rapin said. "Nearly 25 years ago, alternative capital was introduced as a capacity provider for the industry to manage through such periods of volatility. Its role as a diversified source of capacity has been tested throughout numerous catastrophe events, the pandemic, and the introduction of new lines of business like cyber or net-zero risks. Alternative capital has solidified its position as a material capacity source and critical tool for resiliency."

Addressing the industry's critical role in facilitating recovery, Andreas Berger, Group CEO, Swiss Re, called for an alignment of the multiple strengthens that underpin the (re)insurance marketplace. "Partnership through crises is not just about enduring the storm but about shaping the recovery together," said Mr. Berger. "In a world of rising uncertainties-from climate shocks to economic and geopolitical upheavals-true resilience comes from uniting expertise, sharing risks, and building trust. We face cycles of volatility, but by aligning our strengths, we can protect communities, provide financial support to rebuild and recover faster, and make the world more resilient. Together, we partner for progress."

About Guy Carpenter

Guy Carpenter, a business of Marsh McLennan (NYSE: MMC), is a leading global risk advisory and reinsurance specialist and broker. Marsh McLennan is a global leader in risk, strategy and people, advising clients in 130 countries across four businesses: Marsh, Guy Carpenter, Mercer and Oliver Wyman. With annual revenue of $23 billion and more than 85,000 colleagues, Marsh McLennan helps build the confidence to thrive through the power of perspective. For more information, visit guycarp.com, or follow on LinkedIn and X.