Swiss Re Ag · SIX:SREN
Swiss Re — Swiss Re Media Conference 2020
18 slides from Swiss Re's conference presentation, Sep 8, 2020
Slide 1: Swiss Re Media Conference
Swiss Re Media Conference Thierry Léger – Group Chief Underwriting Officer Moses Ojeisekhoba – CEO Reinsurance Zurich, 8 September 2020
Slide 2: Macro-economic scenario and implications for underwriting
Macro-economic scenario and implications for underwriting Thierry Léger – Group Chief Underwriting Officer 01 2
Slide 3: Major currencies offer de minimis risk-free return, increasing pressure on technical results
Major currencies offer de minimis risk-free return, which increases pressure on technical results Development of a 6-year payout period discount factor EUR, GBP and USD discounting has evaporated 105% 100% Investment returns on new business approach zero 95% 90% 85% Underwriting needs to contribute
Slide 4: Social inflation puts continued upward pressure on large claims
Social inflation puts continued upward pressure on large claims The share of very large plaintiff awards has While a backlog in court cases, due to COVID-19, grown substantially since 2011 might give a short reprieve, the drivers of social inflation are here to stay: Share of very large General Liab
Slide 5: COVID-19 impact severity is uncertain for different countries
COVID-19 impact severity is uncertain for different countries; containment measures will continue to have a significant drag on the economy Cumulative number of deaths per 1 million in 2020 Excess deaths, UK and US (Jan-Aug 2020) 700 200% 600 150% 500 400 100% 300 50% 200 0% 100 0 -50% Jan Feb Mar A
Slide 6: The heat is on: peak perils hitting the industry
The heat is on: peak perils hitting the industry, aggravated by emerging secondary perils, and losses set to grow with a warmer climate and rapid urban sprawl Nat Cat insured losses on the rise, … and no comforting outlook for … with secondary perils1 gaining visibility peak perils back on the scene
Slide 7: Some positive price development observed, yet it is important to cover true cost of risk
Some positive price development observed, yet it is important to cover true cost of risk Nat Cat market keeps hardening, but primarily in Rate increases in Casualty, but still limited to specific non-European perils business segments Swiss Re proprietary index, estimating Event XL reinsurance market
Slide 8: Swiss Re Institute creates deep risk insights enabling tailored solutions
Swiss Re Institute creates deep risk insights enabling us to offer tailored solutions to our clients Property Nat Cat Liability & Motor Cyber • Curating a proprietary risk view for • Liability risk drivers model, allowing • Curate and advance suite of cyber 200+ nat cat scenarios very granular risk
Slide 9: Positive outlook for the insurance industry driven by premium growth and recovery
Positive outlook for the insurance industry driven by premium growth, economic recovery and record-high protection gaps Improving insurance demand alongside economic recovery. Positive rate A number of supply-side factors support market hardening: capacity momentum will carry into 2021: available ca
Slide 10: Reinsurance – key in tackling future challenges together
Reinsurance – key in tackling future challenges together Moses Ojeisekhoba – CEO Reinsurance 02 10
Slide 11: Maintaining a thorough focus on underwriting fundamentals
Maintaining a thorough focus on underwriting fundamentals and helping to enhance preparedness for future systemic risks Economic fallout from COVID-19, including increasing insurance liabilities and continued low interest rates, requires the re/insurance industry to increase its focus on underwritin
Slide 12: We are acting as a strategic partner to clients to help restore resilience
We are acting as a strategic partner to clients to help restore overall resilience and financial stability Macro resilience expected to reduce by 20% in 2020 Swiss Re is supporting clients to… Swiss Re Institute Global Resilience Indices (%)1 …reduce earnings e.g. reducing nat cat exposure, 94 93 Un
Slide 13: Solutions developed to enhance longer term resilience of clients, individuals and society
Beyond addressing financial stability, our solutions are developed to enhance the longer term resilience of our clients, individuals and society Needs Clients Individuals Society Growth, efficiency, profitability & Improved customer journey & Resilience & sustainability risk knowledge affordable, re
Slide 14: Client examples: P&C Analytics
P&C Analytics – detailed portfolio insights helping enhance clients’ business Analytics platforms and bespoke advisory provide data insights that help grow clients’ business, increase their profitability and enhance their efficiency Solution features Client benefits • Extensive risk knowledge, profo
Slide 15: iptiQ – streamlined, digital and affordable protection products
iptiQ – delivering streamlined, digital and affordable protection products Digital white-labelling B2B2C insurance platform, helping partners accelerate access to new customers and products Value proposition Client benefits Selected partners • Excel through a cutting-edge digital • End-to-end platfo
Slide 16: We must continue to work together to restore resilience
We must continue to work together to restore resilience amid a changed risk landscape Economic rebound post COVID-19 expected to drive risk exposure growth with overall protection gap continuing to widen While positive P&C price developments can already be observed, insurance rates need to react mor
Slide 17: Q&A
Q&A 17
Slide 18: 18
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