Intensifying natural catastrophe risks to drive property reinsurance demand: Swiss Re

Global reinsurance giant Swiss Re is expecting continued rising demand for coverage of natural catastrophe risks, as the volatile environment is likely to result in increased use of insurance and reinsurance protection to manage risk.

Today at the 2024 Monte Carlo Rendez-Vous de Septembre, Swiss Re explained that growing demand for reinsurance protection will be a key topic of discussion at the event.

In addition, forward-looking risk assessment and capital management are also expected to be a focus of conversations at the RVS, “as adequate risk views and volatility management are important requirements in the uncertain environment,” Swiss Re explained.

Part of this is an expectation for continued and rising demand for natural catastrophe reinsurance protection, which should also continue to feed risk through to capital markets and insurance-linked securities (ILS) investors.

Urs Baertschi, Swiss Re’s Chief Executive Officer Property & Casualty Reinsurance, said, “The key topics for the industry remain largely unchanged from last year, but the challenges have intensified, leading to higher demand. Faced with elevated natural catastrophe risks, economic uncertainty and geopolitical instability, reinsurance is the natural way for insurers to protect themselves from outsized losses. We are ready to support our clients with our capital, expertise and solutions.”

The company explained today, “Higher property values, urbanisation and rising repair costs due to inflation are expected to drive demand for property re/insurance, especially in areas with intensifying natural catastrophe risks.”

Gianfranco Lot, Chief Underwriting Officer Property & Casualty Reinsurance, added, “The insurance industry has shown time and again that it can rise to the challenge of a rapidly changing risk environment. To further progress as an industry, we need to leverage data better to predict future risk without being too anchored in the past. As a reinsurer we want to be a facilitator for our clients, helping them achieve greater precision to manage what’s ahead of us.”