Guy Carpenter’s David Priebe Describes Attractive Reinsurance Market for Investors

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In this video interview with The Insurer TV concurrent with the 2023 Monte Carlo Rendez-Vous, Guy Carpenter’s David Priebe, Chairman, indicates how increasing inflows—including in equity, where USD 4 billion has come back to existing reinsurers; insurance-linked securities (ILS), which has had inflows of USD 3 billion; and the private space, where capital inflows are building—have made the market more appealing for investors.

“We are starting to see now people get seriously interested in investing,” he explained. “You are going to see continued inflows into the ILS space, particularly in the 144A (catastrophe bond) market, which has really performed quite well. And you are going to start seeing some greater participation on either existing carriers or some possible new start-ups.”

Regarding how capital can play a bigger role in managing risk transfer, David said that the work done to enable investor confidence in high-risk situations, such as the Ukraine war, can now be applied under other scenarios.

“That work has been done, and now we're starting to build tools and capabilities to allow underwriters to assess that risk and price that risk,” he continued. “I think we're going to see more alignment between public-private partnerships, and we need to do that to close the protection gap. I think that's critical for the relevance of our industry, that we're there to serve society in that way, and how we can work together to deal with those issues.”

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