Swiss Re warns rising systemic risk threatens European insurability
What happened
Swiss Re stated that risk concentration and interconnected supply chains are making losses harder to contain and faster to spread across the European market. Leopoldo Camara, head of Northern, Central and Eastern Europe P&C Re at Swiss Re, noted that capital alone will not be enough to keep risks insurable. Primary insurers and reinsurers are facing larger individual risks and greater geographic clustering.
Why it matters
The increasing systemic risk and the growing demand for reinsurance are changing how losses build and spread across the continent. This trend suggests that more reinsurance will be needed to manage rising exposures in the European market.
Who's involved
- EuropeThe continent where risk concentration and interconnected supply chains are increasing.
- Deutsche RückA reinsurer potentially facing rising underwriting costs due to systemic risk.
- AXAA primary insurer operating within the European market.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Deutsche RückSpeculative
Deutsche Rück might face increased underwriting costs due to rising systemic risk and capital demand.
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The entities involved
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Baden-Baden
town in Baden-Württemberg, Germany
Nothing else this week.
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Europe
terrestrial continent located in north-western Eurasia