He highlighted how certain market participants were also looking to achieve greater vertical integration by establishing more control over the entire value chain from policyholder to capital provider. In his final comments, he said: "The capital to risk value chains will continue to evolve but in the short run, sellers are open for business offering more capacity and innovative solutions to solve strategic capital and volatility issues. We are seeing supply-driven demand."
Senior industry figures provided a range of insights into the factors contributing to the drive by major insurance groups to extend their underwriting remit and considered the implications of the resurgence of the global composite model on market dynamics as well as the ramifications for customers.
Steve ARORA, CEO of AXIS Re, called on the industry to embrace change to tackle current market challenges, highlighting the need for adaptation and focus on the client. He said: "We are undergoing a period of unprecedented change and we must all adapt. We know that one of the biggest challenges we face is the price equilibrium dynamic and we must tackle that. But there is also a reason for optimism as trends over the long term are favorable for the industry." He concluded that he was bullish on the prospects for the global reinsurance sector. "It is a difficult time for our industry as we enter a new era. It will require all of us to have the courage to address the short-term dynamic and the vision to succeed in the long term."