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Montador explained that at this year\u2019s RVS, the hard discussions with clients and brokers were not the focus, suggesting that these will take place later in the year.<\/p>\nLaurent Montador, Deputy Chief Executive Officer (CEO) of French reinsurer Arundo Re, told Reinsurance News at RVS 2025 in Monte Carlo, that as the risk landscape continues to evolve, it\u2019s important to stay disciplined.<\/p>\n
Montador explained that at this year\u2019s RVS, the hard discussions with clients and brokers were not the focus, suggesting that these will take place later in the year.<\/p>\n
\u201cThere has not been the strong commitments from one side or the other, because from the beginning, the market is softer, so it means a decrease in premium,\u201d he said. \u201cNow, it’s about the extent of this decrease, and also the demand of new capacity, or re-emergence of older capacity with lower frequency cover and sometimes aggregates.\u201d<\/p>\n
Montador noted that Arundo Re is \u201cflexible up to a certain level,\u201d and he highlighted the need for only single digit rate reductions in certain areas, which is something feasible and understandable.<\/p>\n
\u201cBut for us, there is a need to stay disciplined with structure. Of course, there\u2019s talk of lower layers and the frequency cover, but we don’t want to come back to a period where you have everything that could be covered. You try and model it all, but in fact, it\u2019s very difficult to model it. The losses are coming from places unexpected. So, we really prefer clear covers, named perils,\u201d he said.<\/p>\n
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<\/a><\/div>\n<\/div>\nAdding: \u201cThere are always new things to be discovered, not only in terms of vulnerabilities, but also physically, new faults with earthquakes, for example. So, we are always learning something new about the dangers that we could face. It’s clear that risks are evolving and growing, and the correlations are challenging, especially with secondary perils, with climate change. And it’s not just the \u2018normal\u2019 attritional risk – correlation; it’s also the correlations on the longer tail of the probability curves. To have a wildfire in winter is something really new linked with previous drought.\u201d<\/p>\n
In terms of what clients want heading into 2026, Montador noted stability in their reinsurer panels.<\/p>\n
\u201cThey don’t like the opportunistic players, and they prefer across the board players. They know that it’s more a buyer\u2019s market. They do not react strongly, even if they felt a little bit shocked in 2023. Perhaps the reinsurance market could have reacted less in 2023, in order to say, okay, this is what we really need, let’s do it in two years\u2019 time.\u201d<\/p>\n
Montador also discussed technology, emphasising that he\u2019s a strong believer in tech and innovation and the arrival of Gen AI.<\/p>\n
\u201cIt has to be done taking into account privacy and security. We train our people with Gen AI, with Microsoft copilot, and also with other tools in order to, for example, enhance delivery and make it faster. They say it can save up to 30% of the time. This is good, because we need to react quickly. It\u2019s not obligatory to be among the first to adopt a new technology, but at least we have to be quick in adopting the maturing technology. \u201cAnd, Gen AI is a very good tool for knowledge management and to be able to incorporate all the knowledge.<\/p>\n
Montador is also a strong believer in data and notably big data, which is vital for insurers and reinsurers.<\/p>\n
\u201cNow, you don’t have only a small portion of data aggregated to the reinsurers, the full, very thin, granularity data could be given to the reinsurance underwriter. And this granularity and cleaner granularity could, in fact, provide more capital in a way, because you have smaller boxes of risk area, and you can better manage your exposure. And that’s what we do.<\/p>\n
\u201cWe also have an exposure management tool where we do rollover of our cat portfolio every day. And so, we can also price, have the marginal pricing of the portfolio, which is very important to have during the renewal process.<\/p>\n
\u201cWe also have a life activity, and the servicing in life activity is also using software and a kind of SaaS as a service within our clients. And being able to give quotation very quickly about non-standard risk, with also medical doctor advisors, to quote a specific life product, for example,\u201d he said.<\/p>\n
To end, Montador discussed evolving risk patterns including catastrophes, geopolitical risks, and cyber.<\/p>\n
\u201cWe have to cope with second events, so an event just after another previous event. This is clearly true for earthquake, but it is also true for big windstorms. And so, it’s all about correlations, in fact. We learn more and more with climate change in the very tail risk. And so, the correlations are not the same than on the attritional part of the claims. We have progress to make on that.<\/p>\n
\u201cSecondary perils, as they are called, are very important, because now it’s the largest part of the cat losses and not only for property. Even now you can have a wildfire due to motor tpl, and so we have to be careful on other lines of business as well, including L&H with heatwaves and pollution. We need to be able to take some buffer in our quotations, to take what is, in fact, unknown, and to make loadings,\u201d said Montador.<\/p>\n
\u201cOn geopolitical and trade tensions, I see protectionism measures as a stress for reinsurance. These have impact on economies and financial markets, impacting our balance sheets and needs for capital. About sanctions taken by different countries, these are understandable on the one hand and we have to cope with this as existing reinsurers being aware that counter-measures can be taken by other countries.<\/p>\n
\u201cIt’s also good to remember that reinsurance is by definition an international business with competitors from everywhere. And in Europe, we have to be careful with too stringent over-regulation measures. It’s very difficult for newcomers to cope with the new regulations or capital requirements. Maybe it’s an explanation why there is no newcomers,\u201d he added.<\/p>\n
\u201cWith emerging risk like cyber, which we think is still emerging, we try to learn more before having an active underwriting. In Europe, the level of data has nothing in common with the level of data in the US, and the market is largely in the US. You have big corporates that have cyber insurance because the financial markets want them to have cyber insurance. They also put pressure on their suppliers in order for them to have a cyber product as well. So, the resilience is growing, but there is lots of progress to do in the SMEs. For us, we privilege existing clients with an across the board philosophy, across different lines of business, including explicit cyber, we say yes so long as cyber insurance is sold with prevention measures and crisis management,\u201d concluded Montador.<\/p>\n
The post Arundo Re is \u201cflexible\u201d but there\u2019s a need to maintain discipline: Laurent Montador<\/a> appeared first on ReinsuranceNe.ws<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" Laurent Montador, Deputy Chief Executive Officer (CEO) of French reinsurer Arundo Re, told Reinsurance News at RVS 2025 in Monte […]<\/p>\n","protected":false},"author":1,"featured_media":2519,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[14],"tags":[],"_links":{"self":[{"href":"http:\/\/www.xinetica.com\/index.php\/wp-json\/wp\/v2\/posts\/2517"}],"collection":[{"href":"http:\/\/www.xinetica.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.xinetica.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.xinetica.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.xinetica.com\/index.php\/wp-json\/wp\/v2\/comments?post=2517"}],"version-history":[{"count":3,"href":"http:\/\/www.xinetica.com\/index.php\/wp-json\/wp\/v2\/posts\/2517\/revisions"}],"predecessor-version":[{"id":2521,"href":"http:\/\/www.xinetica.com\/index.php\/wp-json\/wp\/v2\/posts\/2517\/revisions\/2521"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.xinetica.com\/index.php\/wp-json\/wp\/v2\/media\/2519"}],"wp:attachment":[{"href":"http:\/\/www.xinetica.com\/index.php\/wp-json\/wp\/v2\/media?parent=2517"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.xinetica.com\/index.php\/wp-json\/wp\/v2\/categories?post=2517"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.xinetica.com\/index.php\/wp-json\/wp\/v2\/tags?post=2517"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}