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Traditional reinsurance firms continue to launch alternative capital management platforms, as one strategy to offset the challenges of a soft reinsurance market but also as a way to “maintain presence and relevance,” according to broker Willis Re.
Writing in its recent market report, Willis Re, the reinsurance broking arm of Willis Towers Watson, explains that reinsurers alternative capital and ILS management ambitions are more than just a reactive response to market conditions, rather they are becoming key to remaining an important player in the marketplace.
The broker highlights a “continued need for scale and breadth of service offering” in the current, challenging reinsurance market environment and expects that we will increasingly see a “divergence in results” as certain reinsurers that have achieved scale or diversity are able to outperform smaller players.