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XXXVIII Encuentro Intereuropeo de Reaseuguros


                  More questions than ever

                  The covid 19 crisis is forcing society to face a range of situations
                  that not even the best screen writer in Hollywood could posibly
                  have foreseen. It has called into question everything we knew
                  until now, starting with the way we behave and live. It has also
                  proved there is another way of doing things and interact with
                  others. The Covid-19  revolution  does not escape our political
                  class, nor society as a whole or, of course, our economy and,
                  within it, the insurance and reinsurance industry.

                  Although some of the consequences have already been pictured,
                  it will take some time to know the potential impact the pandemic
                  will have on reinsurers’ bottom line. However, nobody doubts it
                  will be unprecedent.

                  The crisis coincides with a difficult insurance market, with the
                  average combined ratio over 100% in the last three years, soft
                  market conditions, a poor investment scenario that has triggered
                  a deterioration both in assets and solvency rates, together with
                  a more than complicated situation in many a business line.

                  If we add to these, the scarce new capital inflows that will drive
                  to capacity reductions, the prudent position reinsurers will take
                  excluding  pandemic coverages in reinsurance contracts, the
                  increase of cessions to proportional reinsurance, and the sharp
                  price rise in catastrophe reinsurance contracts, the situation
                  becomes more uncertain than ever.

                  All these issues and the fast changes they are provoking will be
                  discussed in the 37th edition of the Intereuropean Reinsurance
                  Meeting. The timing, at the begining of Autumn, with renewals
                  just around the corner, seems more appropriate than ever. We
                  look forward seing you there.

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