Events that would normally take years to happen pour into one year to bear heavy burdens on the world. Mr. Jamil Elbahou, CEO and Chief Underwriting Officer at London-based MGA Connect Underwriting, expects the year 2023 to be a test of capabilities to all insurers even the largest one and a swift towards a hard market and rates increasing.
In the midst of all these volatilities, a light shines for Connect UW with the launch Pixel Re which provides access to new capacity for large multi-national property and downstream energy risks.
. What is your reading of the reality of the insurance sector in general and reinsurance in particular in light of the economic and political changes taking place in the world?
With all the challenges that the insurance market is having to contend with on a global scale – an economic recession, geo-political turmoil, a global pandemic and not to mention accelerating climate change, the insurance market faces some difficult days ahead. This period of volatility is by no means over. Next year will be a test for even the largest insurers as to whether their risk strategies and modelling capabilities are capable of providing the level of support and protection their clients need in this challenging environment.
. The reinsurance companies incurred several losses during the year 2022 due to the economic crises, the decline in global stock and stock prices, and natural disasters…What are its effects on pricing and terms?
The series of natural catastrophe events this year alone will result in over USD 100 billion in insured losses hitting the market. In London we are starting to see the impact of a hardening market with rates increasing across the majority of classes and very few discounts being offered at renewal.
. Do you think that the insurance sector is able to attract new investments in light of the losses it incurs on the one hand and the high benefits on the other?
Although inflationary pressures on global economies have caused interest rates to rise, in comparison the insurance market continues to deliver a good return on investment. New capital will be attracted to the upward turn in rates across the majority of classes, which looks to be a continuing trend throughout next year.
. What are the achievements of ConnectUW during the year 2022? And what are your aspirations for the year 2023?
We continued to grow our book of business this year with careful and selective underwriting. We recently announced access to new capacity for large multi-national property and downstream energy risks with the launch of Pixel RE, which was very well received by our clients and the market. With our additional capacity, we will continue to grow our property and energy book in 2023 and look to add additional capacities where we see demand.