The re/insurance industry is in a transformative cycle driven by a convergence of systemic risks reshaping market dynamics. The interplay between economic pressures, geopolitical shifts and environmental challenges creates a complex backdrop for businesses navigating their risk management strategies.
Risk financing is also evolving at an unprecedented pace, with a growing array of instruments available to support companies’ economic objectives. As interest rates are expected to decline, traditional insurer investment income will face pressure, prompting a greater emphasis on achieving underwriting profit. This shift will necessitate a focus among insurers on pricing adequacy, which will need to be delicately balanced with competitive pressures in a well-capitalized environment.
