As the global re/insurance industry gathers in Monte Carlo for the annual Rendez-Vous de Septembre, Swiss Re highlights the key themes set to shape this year's renewals discussions. The focus will be on how today's world of rapid change and persistent uncertainty impacts the re/insurance market, creates volatility and challenges the assessment of risks, along with the transformative impact of artificial intelligence.
Urs Baertschi, Chief Executive Officer P&C Reinsurance, said: "In a time of elevated global uncertainty and rapid adoption of AI, re/insurance stands as a stabilising pillar. We look forward to engaging with our clients, partners and the public sector on how to further strengthen resilience, harness technology and address the evolving challenges of a changing world."
Geopolitical headwinds and fragmentation
Geopolitical tensions, protectionist policies and shifting economics are reshaping global supply chains, raising costs, amplifying uncertainty, and increasing the risk of long-term fragmentation. In addition, strikes, riots and civil commotion are increasing around the world. In the last 12 months, more than 70 countries have experienced significant protests. Swiss Re emphasises the importance to adopt a holistic understanding of risks and to focus on accumulation management and disciplined underwriting to navigate the current uncertain geopolitical environment.
Accelerating natural catastrophe risks
The mounting impacts of extreme weather remain at the forefront of industry concerns. According to Swiss Re Institute, the combination of economic growth, claims inflation and more intense perils has pushed annual insured natural catastrophe losses well above USD 100 billion in the past few years and increased the possibility of annual insured losses accelerating to USD 200 billion or even USD 300 billion in a peak year.
Increasing losses from natural catastrophes highlight the need for preventive measures such as improved zoning, building standards and advanced risk modelling. At the same time, strong partnerships between the private and public sector are critical. Collective investment into loss prevention and weather resilience will be essential to help mitigate future risks. It is also important that the industry continues to build on the solid foundations of reliable data and increased risk transparency across the value chain.
Harnessing AI and technology
AI brings a transformative opportunity for the re/insurance industry, outpacing initial expectations. In a business where the vast majority of information resides in emails, submissions, contracts and claims files, the ability to process and learn from unstructured inputs is no longer a technical aspiration, but a competitive requirement.
Gianfranco Lot, Chief Underwriting Officer P&C Reinsurance, said: "In the face of increasing risks, data will become even more important. It's the basis for risk and accumulation management, and AI will be a game changer. At Swiss Re, we see it as our responsibility to bring together our expertise, technological capabilities, and partnerships – to help turn ambition into reality."
Media conference
Swiss Re will hold a hybrid media conference in Monte Carlo and via Zoom this afternoon at 14:15 CEST. You can find more information and register here.
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