1 / 21

Data, Decreased Cession Rates, and the Evolving Reinsurer Relationship RAPA Fall Conference

Data, Decreased Cession Rates, and the Evolving Reinsurer Relationship RAPA Fall Conference New Orleans. October 2012. Agenda. A look back at the U.S. life reinsurance market Cession rate declining Consolidation How happy are we with each other? The changing dynamic Food for Thought

jadon
Download Presentation

Data, Decreased Cession Rates, and the Evolving Reinsurer Relationship RAPA Fall Conference

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Data, Decreased Cession Rates, and the Evolving Reinsurer Relationship RAPA Fall Conference New Orleans October 2012

  2. Agenda • A look back at the U.S. life reinsurance market • Cession rate declining • Consolidation • How happy are we with each other? • The changing dynamic • Food for Thought • So….

  3. Disclaimer #1 SOAP

  4. Disclaimer #2 ALL CHARACTERS, STORIES, DESCRIPTIONS, AND ACCOUNTS ARE FICTIONAL AND NOT INTENDED TO REPRESENT SPECIFIC REAL LIFE INDIVIDUALS OR COMPANIES. ANY SIMILARITIES ARE STRICTLY COINCIDENTAL. THESE EXAMPLES CAN NOT BE REPRODUCED WITHOUT THE EXPRESSED WRITTEN AUTHORITY OF……

  5. Cession Rates Continue to Decline2012 Level = 1995 Level 61.8% 61.5% 59.2% 58.8% 57.9% 56.2% 51.2% 47.0% 42.1% 39.9% 36.1% 35.2% 34.2% 32.1% 30.2 % 27.6 % 25.9% 25.1% 24.9% 20.2% 15.1% 14.7% 1 1 1 Estimated

  6. Welcome to 1996with thinner profit margins, tighter expenses provisions & lower premiums 1 1 Ceded Retained 1 Estimated

  7. Retrocession Volumes Have Dropped Even More Dramatically 2012 Hannover Life Re Experience

  8. Smaller Pie = Less PiecesConsolidation of the U.S. Life Reinsurance Market

  9. Traditional US Mortality Reinsurance Market Snapshot Where Have You Been? Where Are You? Where Are You Going?

  10. Evolution of the U.S. Life Reinsurance Market1998-2012 !!!!!!!!!! In 2012, > 93% of new business placed will be with 6 reinsurers

  11. U.S. Players = Major Global Professionals Source: A.M. Best (September 2012) 3

  12. U.S. Players = Major Global Professionals Source: A.M. Best (September 2012) 3

  13. Ceding Company Satisfaction on the Rebound But Was It Ever Good?

  14. 2011 Flaspohler Survey – Net Promoter ScoreMore Detractors than Promoters 2012 Hannover Life Re Experience

  15. The Year 2000

  16. The Year 2011

  17. 2000 – Inforce = 3-4x New Business Volume

  18. 2011 – Inforce = 8-20x New Business Volume

  19. The Greatest Challenge to our Continued Working Relationship

  20. What’s this about Symmetry?What Are the “Rules of the Road?”

  21. In Conclusion…. • We’re in a messy business • The stakes have become large in terms of the magnitude of $’s of inforce • Shrinking new business volumes further change the overall dynamic & focus • Both ways • How do we maintain a constructive relationship going forward • Two approaches • Wait to see how things impact me & construct an argument to protect my position • Try to establish ground rules and principles to be a guiding light

More Related