Share on Facebook Share on Twitter Share on Google+ Share on Linkedin Dinos Iordanou, Chairman, President and CEO of Arch Capital, speaks with WRIN.tv during the recent IIS Global Insurance Forum, about the impact of new capital in the industry. He says the influx of capital into the reinsurance sector over the past few years has affected the cost of insurance. While it is good for the consumer (providing a less expensive product), it is not so healthy for the industry as it has also reduced margins. According to Mr. Iordanou, capital is always looking for good returns, and while the insurance industry has been under pressure, it is still delivering “reasonably good returns” compared to what else is available. Mr. Iordanou is not sure if the new capital will stay in the insurance industry. “Until we see one or two major catastrophes, we won’t know how the excess capital will react.” The consolidation of the reinsurance industry “creates larger and more professional organizations and eliminates duplication…at the end of the day the buyer benefits.” During the convergence, there is some turmoil. It might be destructive to some and opportunistic for others. According to Mr. Iordanou, Arch is one of those firms looking for opportunities based on the consolidation in the industry. For more of our coverage of the IIS Global Insurance Forum, visit the WRIN.tv On Demand Library.