In its fifth annual press briefing held at the Reinsurance Rendez-Vous 2012 in Monte Carlo, Guy Carpenter & Company, LLC, a leading global risk and reinsurance specialist, addressed the challenging market conditions currently facing the re/insurance industry and highlighted opportunities for growth.
Alex Moczarski, President and Chief Executive Officer, Guy Carpenter & Company, and Chairman, Marsh & McLennan Companies International, led a briefing on Opportunities for Profitable Growth. Joining him were Guy Carpenter’s David Priebe, Vice Chairman; Nick Frankland, Chief Executive Officer of EMEA Operations; and James Nash, Chief Executive Officer of Asia Pacific.
In his opening remarks, Mr. Moczarski said: “It is tempting and easy to complain that the insurance and reinsurance industry continues to face serious headwinds, especially from the long-running global economic crisis. But we enter this renewal season with global reinsurance capital at an all-time record level.” He added: “The industry continues to work well providing a socially beneficial product that lubricates the management of risk and decision making, and enables economies and societies to function.”
Commenting on the continuing expansion of the capital markets in the reinsurance arena, Mr. Priebe said: “We have been talking for a long time about the convergence of the capital markets. But I believe the reinsurance market has come of age and that the old distinction of traditional and non-traditional sources of capital is redundant. The market has converged.”
Turning to the potential for profitable growth in the EMEA region, Mr. Frankland described the market as “a diverse region for Guy Carpenter.” He said: “We have to look in several directions and understand and manage different cultures, regulations and levels of sophistication and development.” He concluded that: “The EMEA region provides a varied market requiring flexibility, nimbleness and a broad and deep level of knowledge, but it is a region we see as full of opportunities.”
Continuing the theme of opportunities and challenges, Mr. Nash discussed developments in the Asia-Pacific region. He said: “The major catastrophes of 2011 refocused the spotlight on the need for analysis and modeling capabilities, and in particular caused acceleration in the desire to understand ‘non-modeled’ perils.” He highlighted the vast potential afforded by the region, but concluded: “We share in the exuberance about Asia, but we counsel participants to remain rational and vigilant to ensure we identify when irrational exuberance is becoming apparent or escalating.”
In his closing remarks, Mr. Moczarski said: “And so we enter the 2012 Reinsurance Rendez-Vous with a market that is stable after last year’s catastrophes. The market is a challenge, but it is functioning and efficient. Against this background, Guy Carpenter remains committed to helping our clients identify new risk opportunities, make best use of their capital and grow profitably.”
Introduction by Alex Moczarski, President and Chief Executive Officer, Guy Carpenter, and Chairman, Marsh & McLennan Companies International
David Priebe, Vice Chairman, Guy Carpenter
Nick Frankland, Chief Executive Officer of EMEA Operations, Guy Carpenter
James Nash, Chief Executive Officer of Asia Pacific, Guy Carpenter
Conclusion by Alex Moczarski, President and Chief Executive Officer, Guy Carpenter, and Chairman, Marsh & McLennan Companies International