The challenging macro-economic landscape will be a net positive for both risk carriers and "volatility takers", according to SCOR chief executive Laurent ROUSSEAU, who spoke during the global reinsurer's press briefing at RVS 2022 in Monte Carlo.

Speaking about factors contributing to the current economic uncertainty, and how SCOR is continuing to find opportunities in this difficult environment, Laurent ROUSSEAU emphasized that SCOR is sticking to its governing principles and keeping hold of the risks that it chooses to underwrite.

SCOR CEO added: "If you look at the environment, there has clearly been some headwinds, but the pace and the depth of change is really creating some opportunities for the stronger and better organizations", he said. He also pointed out that SCOR is a risk taker, not a risk trader as the reinsurer retains much of the risk rather than ceding it onto the retrocession market. "The nature of a reinsurer is to be there in times of volatility, when the wind is blowing, the pandemic is around and inflation is all over", he said.

The current market conditions, according to SCOR CEO, are influenced by three main factors. One of them is the frequent and severity of natural catastrophes, which 'has tremendously increased', as ROUSSEAU mentioned. Another one is the pandemic and how it exposed correlations between the life and P&C side of the business that had hitherto been underappreciated. Third is the increasingly challenging macroeconomic environment. "The implication of these three headwinds means increased demand for providers of capital and reinsurance... the market is really shifting", he added. He is anticipating a funamental correction for the reinsurance industry, in the same way the insurance market hardened in 2017.

SCOR CEO also noted that against the backdrop of challenging market conditions, this risk-taking philosophy is the core driver of culture and the current business proposition at SCOR.

The annual Rendez-Vous de Septembre (RVS) in Monaco, four-day event, that brings together in Monaco nearly 3,000 insurance, reinsurance, brokerage and risk management professionals from 80 countries, was set to return as a physical conference for the first time since 2019. The historic industry event is now taking place between September 10 and 14, 2022.