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Dean Klisura, the President and CEO of Guy Carpenter has explained that the market is well capitalised and this is accelerating, while reinsurers remain open and motivated to do business.

Speaking during a briefing held in advance of the Monte Carlo reinsurance meetings, the reinsurance broking CEO noted the market still sits in a state of equilibrium.

Klisura explained, Number one is the market has ample capacity. Reinsurers are motivated to see our clients and do business in Monte Carlo and, so, people in the market have described it as equilibrium, with very engaged clients and reinsurers heading into this weekend.

“All of our clients will be entering these renewal discussions this weekend hoping to differentiate themselves from their key peers in the marketplace, and really leverage their key strategic trading relationships with reinsurers.”

On the client side he said that cedents are “focused on portfolio management and risk mitigation across their portfolios,” while on the capital provider side “reinsurance markets are really bringing a detailed and disciplined underwriting approach to each differentiated renewal at January 1.”

Despite certain published concerns around casualty lines, Klisura said, “Many of our reinsurers are open and motivated for business at 1.1, they want to grow their portfolios.”

He highlighted ongoing headwinds, of inflation, geopolitical risks and macroeconomic uncertainty, while catastrophe losses and climate change are also current concerns that will play into the upcoming reinsurance renewal discussions.

Then going on to say, “But there are also tailwinds that are benefiting our clients in the marketplace and our trading partners.

“The reinsurance market continues to be very, very strong and well capitalised. Capital in the marketplace is strong and accelerating, and for the first time in perhaps three years, we’re seeing the advent of new startups and new capital really being discussed to enter the marketplace in 2025.”

With reinsurers experiencing strong returns and insurance-linked securities (ILS) markets benefiting from this as well, Klisura does not anticipate discipline falling.

“Reinsurers want to hold their positions, want to be disciplined, and they want to write more business as we head into 2025. But we do expect continued and sustained underwriting rigor in the marketplace,” he explained.

But also hinted at the potentially tough negotiations we could see at the year-end renewals this year.

“As you heard from many CEOs this week, reinsurers want to hold their gains, really keep structures, attachment points, terms and conditions where they are, which are producing very, very healthy, ROIs for those businesses.

“So, it’ll be a challenging conference for our clients to try to make some headway in those discussions,” Klisura said.

Also read: New cat bond sponsor interest to continue in 2025, alternative capital to keep flowing: Rousseau, Guy Carpenter.

Reinsurers open and motivated. Capital strong and accelerating: Klisura, Guy Carpenter was published by: www.Artemis.bm
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CatX, a digital catastrophe and parametric risk exchange start-up, has announced an important hire for the company, bringing onboard experienced London-based reinsurance and retrocession broker Jon Wood to become the firm’s first Head of Origination.

CatX’s ambition is to provide a flow of risks to insurance-linked securities (ILS) investors through its digital platform.

Wood’s experience in the industry-loss warranty (ILW) space could prove beneficial here, with this being likely the main structure a platform can quickly gain traction in, given its relative lack of complexity compared to indemnity structures.

The company said, “This strategic hire underscores CatX’s commitment to broadening its market reach ahead of the upcoming January renewals, as the company targets a significant increase in transaction volume particularly in parametric, Industry Loss Warranties (ILW), and specialty reinsurance.”

Wood most recently served on the Retrocession leadership team at Aon’s Reinsurance Solutions.

At Aon, Wood helped shape and execute the broker’s global strategy, driving high-value transactions across the international reinsurance market.

Before his time at Aon, Wood held senior positions at leading reinsurance brokers Willis Re and Guy Carpenter.

Given his retrocession focus at his most recent permanent role at Aon, Wood has experience placing risks into both traditional reinsurance markets and alternative capital markets, or insurance-linked securities (ILS).

Since leaving Aon in September 2023, Wood has been consulting to European reinsurer VIG Re on retrocession and reinsurance.

Benedict Altier, Co-Founder and CEO of CatX, said on the hire, “We are thrilled to welcome Jon to the CatX team. His appointment comes at a pivotal moment, as interest from new capital sources for opportunities in the insurance space continues to grow. Jon’s leadership will be key in driving our strategy and helping us to better connect risk with new capital.”

Jon Wood, newly appointed Head of Origination, added, “CatX has created a unique digital platform to efficiently connect high-quality capital with leading (re)insurance risk. I am excited to be part of the team as we make insurance a frictionless, straightforward, and accessible asset class for investors while delivering pricing and process efficiency to brokers and insurers accessing new sources of capital.”

Lucas Schneider, Co-Founder and CTO of CatX, also said, “With over 20 years in the industry, Jon will help us to secure attractive opportunities for our funds and accelerate the flow of alternative capital into insurance. We aim to provide access not only to innovative technology, such as our AI-powered tool Catamaran, but also to leading experts in structuring and executing insurance transactions. This powerful combination allows us to deliver exceptional outcomes for investors while ensuring comprehensive risk protection.”

At CatX, Wood will be tasked with supporting reinsurance, retrocession, and global corporate broking teams to make best use of the capital available through the CatX platform, creating opportunities that align investor interests with the risk management needs of insurers and corporates.

CatX hires London-based reinsurance & retro broking specialist Jon Wood was published by: www.Artemis.bm
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