Urs Baertschi, Chief Executive Officer of Property & Casualty Reinsurance at Swiss Re, emphasised that discipline and stability remain key for the reinsurance industry, with further consolidation likely as climate risks and technological shifts reshape the market.
In our latest video interview, now available to watch in full,
Baertschi expects the industry to expand broadly in line with global GDP, though at a slower pace than in prior years. He also feels that consolidation is likely to continue, with big reinsurers already accounting for a higher share of premium volumes than in the past.
Delegated authority arrangements, he noted, are also experiencing renewed interest as companies explore growth opportunities. “The large players generally write a higher percentage of the overall premium volume than 10 years ago, and we would expect that trend to continue,” he said during the interview.
Shifting interest rates, inflation, and geopolitical uncertainty remain influential, but Baertschi stressed that none of these factors are new to the sector. “As an industry, we take this into consideration in our models, in our pricing assumptions, and in our strategies. We are generally quite resilient and work through these various phases of spikes,” he explained.
Climate risk is increasingly shaping market dynamics. Secondary perils such as floods, wildfires, and severe convective storms now account for roughly 60% of global catastrophe losses. “Where we live, how we live, how we expose ourselves, and how we mitigate against against these risks. Models have become better, though they generally lag a little behind because new data emerges and is then included,” Baertschi said.
Regarding pricing adequacy, he highlighted the industry’s careful approach: “What we’re looking to do is assess what is an adequate rate for a particular risk in an evolving risk landscape. Then the market talks, and this is where the pricing comes in. If you have a hardening market, adequacy goes up, and if you have a softening market, adequacy goes down.”
He continued: “And what is important about this topic is that as an industry, but also as society, we’re aware of these risks. We’re paying attention to it.”
On growth opportunities over the next 12 to 24 months, Baertschi emphasised, in the interview, client needs and partnerships: “We start with the clients and what’s important to them. Where do they see a need? Where do they see an opportunity? Then we have an open dialogue on how we can partner around their needs.”
Artificial intelligence was also discussed. “Generative and agentic AI is a big topic for our industry, and one that we need to be comfortable with and, quite frankly, lean into, because it can really be a game changer,” Baertschi said.
The full video interview is embedded below.
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