Swiss Re sees increasing demand for reinsurance in volatile environment

Swiss Re expects a growing demand for reinsurance protection amid uncertain times. Elevated natural catastrophe risks, economic instability, and geopolitical concerns are primary drivers. Swiss Re focuses on refined data, modelling, and capital management to navigate this environment.

Urs Baertschi, CEO Property & Casualty Reinsurance, highlights the intensified challenges and the role of reinsurance in protecting insurers from significant losses. Increasing property values, urbanisation, and higher repair costs due to inflation contribute to the demand for re/insurance.

The construction industry's positive outlook, especially for renewable energy projects, further boosts demand. Swiss Re launched a Centre of Competence for Renewable Energy to support clients in managing related portfolios.

The cyber re/insurance market continues to grow due to rising awareness of cyber attack frequency and sophistication. Efficient capital allocation is crucial in managing accumulation risks.

In the US, the litigation environment raises concerns. Liability claims growth has outpaced economic inflation, driven by large court verdicts. This trend may impact casualty lines, potentially reducing available capacity.