The CEE and CIS regions will play an increasingly important role in the global reinsurance industry

The emerging insurance markets in the CEE and CIS regions have a significant potential in the future years and they will play an increasingly important role in the global reinsurance industry. "Geographically, they represent quite a significant region which will develop extensively over the next 20 to 30 years. And as these markets develop, they will increase their involvement in the global reinsurance market", Kirill SAVRASSOV, Chief Underwriting Officer and Senior Vice-President, PHOENIX CRetro Re's, has explained in an interview for INSURANCE Day.

This is the economic context in which PHOENIX CRetro Re began its activity as a niche specialist reinsurance platform which brings together the LLOYD's and the international catastrophe reinsurance market with insurers and other capital providers from the Central and Eastern Europe (CEE), the Commonwealth of Independent States (CIS) and the Middle East and North Africa (MENA) regions.

In terms of its structure, PHOENIX CRetro Re is not a risk carrying entity, but serves as a platform through which LLOYD's syndicates and, after a year or so, other global reinsurers, can access retrocession capacity provided by insurance and reinsurance companies as well as institutional investors based in CEE, CIS and MENA.

At the moment, the local markets within the CEE, the CIS and the Middle East have the capacity and the understanding to participate in the international cat markets, but these local markets are not quite developed enough. "So these markets have no exposure whatsoever to global cat events; they are not able to participate due to the fact that almost no companies in the market have adequate financial strength ratings as the sovereign rating in these countries, which limits the scope of individual corporate ratings, is well below the minimum requirements of the security committees of international brokers", Kirill SAVRASSOV explained.

In this context, PHOENIX CRetro serves both as an aggregator and, under certain circumstances, as a subscription market. "Local companies in these regions are prevented from participating in the international cat markets due to the lack of an S&P rating and because they are quite small companies. Currently they are only able to write lines of between USD 1 million and USD 5 million on an individual basis. But any syndicate looking for cover wants much bigger lines. So we are acting as an aggregator for these relatively small companies", Kirill SAVRASSOV added.

Through this process of aggregation, PHOENIX CRetro Re will be able to provide single lines of retrocession cover of between USD 16.2 million and USD 80.8 million. "So on an accumulated basis, we provide those local companies the opportunity to start writing the retrocessional programs of LLOYD's syndicates. We do this by using all sorts of instruments available on the ILS and collateralized reinsurance markets. With these tools we unite the need for capacity that exists in the cat retrocession market with the demand from these local markets to participate in the cat markets", the Vice-President of PHOENIX CRetro Re declared.

Follow XPRIMM Publications on LinkedIn, for more data on the insurance and financial industry.

Share |

Related articles

The 15th International Risk Management Conference to take on 11-12 April 2019 at The Ritz-Carlton hotel in Almaty, Kazakhstan

The 15th International Risk Management Conference taking place on 11 and 12 April 2019 at The Ritz-Carlton hotel in Almaty, Kazakhstan. Since 2005, this Conference has become a traditional event not only for the insurance sector of the CIS countries, but has also acquired the international status. XPRIMM Publications is a traditional media partner of the event.

2019-02-07

Inclusive Insurance - a creative solution to narrow the protection gap in the emerging markets of the Southeastern Europe

Insurance should be accessible to all social classes, regardless of their wealth & income status. Products offered today are conventional insurance products, largely inspired from the developed markets as "one-size-fits-all" solutions, affordable to only middle- and high-income clients in the Eastern Europe's emerging & developing markets. Inclusive insurance's goal is making insurance available to all, with responsible insurance offers, thus making up for a solution to narrow the insurance coverage gap in the region.

2019-02-14

Latest trends and challenges in the property and motor insurance lines under scrutiny, in Vienna

Property and motor insurance lines are providing for about 75% of the non-life insurance business in the CEE region, but are responsible for over 77% of the claims expenses. As such, although other classes of risks are emerging, for the time being and most probably for a rather long period ahead, property and motor insurance lines will continue to be at the heart of CEE's insurance market architecture.

2019-02-14

FIAR 2019: Register before 28 February and save EUR 400 of the attendance fee

To the satisfaction of its traditional guests, FIAR returns in 2019 to its historical hometown, Sinaia. The forthcoming edition will benefit from the comfort and professional facilities of a new venue, the Conference Center of the International Hotel ****, located in the heart of the beautiful mountain resort. Registration is opened at a significantly discounted early bird rate until 28 February.

2019-01-10

ON THE MOVE

Peter CLARKE named VP & COO of FAIRFAX

FAIRFAX Financial Holdings Limited announced that Peter CLARKE has been appointed Vice President (VP) and Chief Operating Officer (COO) of FAIRFAX, reporting to FAIRFAX President, Paul RIVETT.

12.02.2019

ERGO Group appoints a Polish manager

Adam ROMAN, board member of Ergo Hestia (Poland), will hold the position of Head of Global P&C of the ERGO group, effective 1 March. His tasks will include supervision over property insurance of the group in the areas of underwriting, actuarial and pricing, as well as reinsurance.

07.02.2019

TOP EVENT

Inclusive Insurance - a creative solution to narrow the protection gap in the emerging markets of the Southeastern Europe

Insurance should be accessible to all social classes, regardless of their wealth & income status. Products offered today are conventional insurance products, largely inspired from the developed markets as "one-size-fits-all" solutions, affordable to only middle- and high-income clients in the Eastern Europe's emerging & developing markets. Inclusive insurance's goal is making insurance available to all, with responsible insurance offers, thus making up for a solution to narrow the insurance coverage gap in the region.

14.02.2019

Latest trends and challenges in the property and motor insurance lines under scrutiny, in Vienna

Property and motor insurance lines are providing for about 75% of the non-life insurance business in the CEE region, but are responsible for over 77% of the claims expenses. As such, although other classes of risks are emerging, for the time being and most probably for a rather long period ahead, property and motor insurance lines will continue to be at the heart of CEE's insurance market architecture.

14.02.2019

FIAR 2019: Register before 28 February and save EUR 400 of the attendance fee

To the satisfaction of its traditional guests, FIAR returns in 2019 to its historical hometown, Sinaia. The forthcoming edition will benefit from the comfort and professional facilities of a new venue, the Conference Center of the International Hotel ****, located in the heart of the beautiful mountain resort. Registration is opened at a significantly discounted early bird rate until 28 February.

10.01.2019

See all