Jim Summers, CEO of Global Specialties talks with the Insurer TV in Monte Carlo
The marine retrocession market is expected to harden at the January renewals after adverse development on the Baltimore bridge loss, Willis Re Global Specialties CEO Jim Summers told The Insurer.
“What I would envisage happening is the retrocession market being tougher at 1.1 than the underlying reinsurance markets,”
Summers said.
However, Summers does not expect the Baltimore loss to drive changes in program structures. Further consolidation of classes within marine composite covers was possible, but he did not see the bridge loss as the cause.
On purchasing trends, Summers said the wider softening market was encouraging clients to buy more quota-share coverage.
“As the markets soften, people tend to buy more in the way of quota share. As the markets harden, they tend to buy less,”
he said.
BMS Re U.S. deal accelerates expansion
Summers described Willis Re’s planned acquisition of BMS Re’s U.S. business as “transformational”. Through the deal, Willis Re will obtain six U.S. locations, established producers and an existing client base, he said.
Building that footprint office by office would have taken substantially longer, Summers said, adding that the acquired platform would make further U.S. recruitment easier.
Over the next two to three years, Willis Re wants its geographic footprint, scale and business mix to resemble those of insurance broker Willis, Summers added.
