In this interview I speak with Alkis Tsimaratos, Regional Director for France and southern Europe at Willis Re, who says that the market dynamics in these regions follow those of Europe more generally.
He says: “It’s been pretty much a loss free environment in recent years, and reinsurers have been able to replenish their capital base. They need to deploy that capital and write business, especially given that their share of the US natural catastrophe reinsurance market is decreasing due to the increased participation of insurance-linked securities.
“France and southern Europe have benefited from that trend, given that they haven’t had major losses for the last ten years, although southern Europe has had a couple of local losses. As a result, it is a buyer’s market.”
Tsimaratos says this means that buyers can define the terms and conditions that they want, and that they are benefiting from price competition as well.
He adds: “While there is this trend on price, there is also a trend on the structures. Buyers have started to look at the way that they transfer their risks on a consolidated basis. This has changed the way that they purchase reinsurance, and while linked to the fact that there is currently an competitive market for reinsurance, it is also symptomatic of an overall change in the way that cedants purchase reinsurance more generally.”