Jon Ogilvie Global Head of Non-Marine Specialties talks with the Insurer TV in Monte Carlo
The influx of alternative capital has “fundamentally changed” the retrocession market by providing additional flexibility for market participants, Jon Ogilvie, Willis Re’s Global Head of Non-Marine Specialties, has said.
In an interview with The Insurer TV at the Rendez-Vous de Septembre in Monte Carlo, Ogilvie was asked about the impact of alternative capital in the sector.
“I think clients expect to see both traditional and non-traditional forms of capacity forming part of a single strategy,”
Ogilvie said.
“It’s not only the amount of capital that’s coming from these sources, it’s the added flexibility that they provide to clients.”
Ogilvie said the new capacity was coming in different formats.
“We’ve got collateralised quota shares, cat bonds, index solutions (and) we’ve seen pillared products.”
“Aggregate covers are probably worth a specific mention, they’re very much catered around client needs, (are) very bespoke in nature and that’s probably why we’ve seen an uptick in the amount of aggregate deals purchased in the market over the last two years.”
Ogilvie also discussed how the softening market is influencing buyer strategy.
“Historically speaking, we see more retro limit purchased in a softening market and certainly more flexibility shown,”
he said.
“Buyers are certainly more strategic about how they approach the market (and are) very much coming to us with specific goals and objectives.”
“I think generally buyers are aware of all the products that are available but certainly our role at Willis Re, we’re trying to make sure that they are buying the right amounts of cover, the right mix of products, the right level with the right coverage and fundamentally bought at the right price.”
Watch the full interview to hear more about:
- What makes Willis Re’s proposition resonate with clients
- What the firm is advising clients ahead of 1.1 renewals
- The biggest opportunities for Willis Re in the immediate future
