On Market Transformation
Time certainly flies. It was over twenty years ago that Aon bought the Dutch firm Hudig-Laneveldt ; a deal prompting a chain reaction of moves and counter-moves like a giant game of Risk® by the end of which the broking world map was completely re-drawn. Today the market is accustomed to the mighty fire-power of the three global brokers – Aon, Marsh and Willis – who … Continue reading On Market Transformation
On Black Holes
What a week for Royal Sun Alliance, already unpopular with investors following their decision earlier this year to cut their dividend payout. The impact of the St. Jude storm particularly on their large Danish subsidiary forced the company to release a profits warning. Worst still was their second warning four days later after revealing irregularities in the accounts of their company in Ireland. The subsequent … Continue reading On Black Holes
On Innovation in Singapore
Meeting last week and attracting nearly 1,000 delegates, the 12th biennial Singapore International Reinsurance Conference (SIRC) has come a long way since the event joined the industry travelling circus in 1990. So too has Singapore as a regional reinsurance hub. Back then there were plenty of reinsurers but many were small and ineffective; few brokers could be taken seriously; markets like China and Vietnam were closed; … Continue reading On Innovation in Singapore
On Keeping Customers Close
Dragging French reinsurer SCOR Re back from the brink and restoring the company’s credibility and financial security was an achievement many in the market thought impossible. So when their CEO Denis Kessler, who engineered this much lauded comeback spoke about the emerging economies at the AM Best Conference last week, as reported in Insurance Insider, his comments were not without significance. His rallying cry for … Continue reading On Keeping Customers Close
On the Underwriting Galácticos
A term coined in Spain, Los Galácticos were the soccer superstars expensively acquired by Real Madrid following a policy at the time to construct a world-class team by bringing together the most talented, prestigious and marketable players on the planet. The glamour of signing Luis Figo, Zinedine Zidane and David Beckham and the spectacle they produced together on the field was fantastic but the club ultimately failed to build long-term sustainable … Continue reading On the Underwriting Galácticos
On Insurance Wars
Disputes within our industry are hardly unusual despite contract-certainty and a whole heap of regulation. Parties often disagree about how a risk has been presented, policy interpreted or a claim adjudicated. Sometimes things can get a bit ugly, end up in court and on occasions businesses who were previously friends can find themselves at opposite ends of a legal wrangle. Surprising as it might seem, … Continue reading On Insurance Wars
On Other People’s Money
Although there have been a few acquisitions at Lloyd’s since, none were as bold as Catlin’s takeover of Wellington in 2006 in the aftermath of Hurricane Katrina. The new enlarged syndicate immediately became the largest at Lloyd’s; a position it holds today, writing gross premiums of nearly £1.8 billion last year. Surprising many back then, in addition to acquiring the managing agency, Catlin also bought … Continue reading On Other People’s Money
On the Cost of Doing Business
Already 2013 has the air of being a transformative year for the industry. Over the past 12 months the usage of non-traditional sources of capital has arguably reached a tipping point that shifts the reinsurance business model possibly forever and not just in response to the low interest rate world we presently live in. Equally the quota share sidecar deal struck in March between Aon … Continue reading On the Cost of Doing Business
On an Industry within the Industry
At times the insurance industry seems to defy gravity, growing profitably even in the direst of economic conditions. Yet the recent announcements by Aviva and Direct Line of job losses of 2,000 a piece are a reminder that our workforce is not immune in these recessionary times. As the pricing conditions in UK continue to deteriorate we can expect more companies to pursue cost-cutting strategies … Continue reading On an Industry within the Industry
On Glastonbury 2013
The weather was kind and wellies were an accessory not a necessity. After a year off Glastonbury returned last weekend and was bigger and better. 180,000 music lovers descended on Worthy Farm and once again proved that it is possible to have fun and be safe. The presence of the biggest rock band in the world (no, not the Mumfords) meant the crowd in front … Continue reading On Glastonbury 2013
Roger Bickmore 