In this edition of WRIN.tv’s Reinsurance Today, host Frank Nutter, President of the Reinsurance Association of America (RAA), welcomes Mr. John Bender CEO of Allied World Re to discuss opportunities in the reinsurance market, including emerging risks such as cyber and “green technologies, alternative capital and Asia.
“On the insured level, there are a number of opportunities for growth and cyber insurance is one of them,” said Mr. Bender. “There is a need for cyber insurance especially for the smaller middle market customers. The insurance and reinsurance industry needs to create awareness of the risks associated with cyber attacks and the coverage’s that are available to protect companies.”
According to Mr. Bender, “Green Technology’ is a growth opportunity for reinsurers but over a longer period of time. Green technology is important and alternative energy is very important to the future of our country and to the world. The U.S. Government is starting to privatize a number of government programs and the National Insurance Flood Program is one that should be privatized as it is my belief that the insurance industry can do a better job on that than the government.”
Regarding alternative capital, Mr. Bender sees alternative capital as both a challenge and opportunity. He goes on to say that, “Alternative capital is not something new to the industry. However the amount of alternative capital has grown exponentially over the last few years and that is the threat. Companies that ignore the threat of alternative capital will find themselves irrelevant in the next five years. It is important to find ways to use our relationships and access to distribution to the alternative capital and make it a win- win situation for all.”
Mr. Bender also feels that China offers tremendous growth opportunity for the insurance industry and feels that the premium opportunity for the industry in China would be in the trillions of dollars. He also goes on to say that the rest of Asia as well presents a great many opportunities for the insurance industry.”
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