‘Reinsurance needs innovation’: Guy Carpenter Europe and MENA chief executive

The European reinsurance sector is in urgent need of more fresh ideas, according to Guy Carpenter chief executive of continental Europe and MENA Massimo Reina.

Speaking to GR at the Monte Carlo Rendez-Vous, Reina said: “What we are really missing from the reinsurance market at the moment is innovation.

“We need to see a much stronger drive towards fighting the problems of our clients. The market is still very traditional and often failing to come up with the best solutions.”

But Reina added that the European market was at least stable, despite issues such as a lack of growth.

Reina characterised the Middle East market as being very different. The region is still growing economically, and the market was fragemented, he said.

“We cannot see an immediate consolidation in the near future,” he added. “It is necessary, but it will take some time.”

Reina said that Africa was another region attracting much attention from insurers and reinsurers.

“It looks like Casablanca could be the next insurance hub,” he explained. “But it is a large continent, and we are still searching for the best model. We want to grow in a gradual and profitable way. That is a challenge for the next year or so.”

Reina said that the industry spends too much time talking about the effect of alternative capital, especially as its impact has been muted in Europe and the Middle East. Instead, it should be seen as an opportunity, he added.

However, the sector does not spend enough time talking about underinsurance, he added. “We need to insure the huge amount of risks that are currently not insurable.”