Evolving risks, evolving solutions: inside Axis Re’s gameplan

“One of the big challenges right now is making sure that rate is keeping up with trend. That is going to be especially important heading into renewal season.”

For Lauren Kent, head of international at Axis Re, discussions are centring around how reinsurers are managing US exposures, particularly in casualty portfolios.

Kent noted: “A key topic is how reinsurers are looking at reducing US exposures within their international portfolios, particularly on the casualty side. There is a lot of talk around this, and it’s something companies continue to focus on as they try to manage those risks more carefully.”

Axis Re’s approach includes maintaining strong client relationships, Kent explained. “We’re in regular contact with our clients to get a clear picture of what’s happening in their portfolios so we can adapt and offer solutions that fit what they need.

“It’s about being flexible and finding the right structures that work for the short as well as the long term.”

Kent took the reins of Axis Re International in December 2023. She is responsible for shaping the division’s strategy in alignment with the strategic priorities of the global reinsurance business. This includes driving the profitability of a casualty and specialty portfolio.

Her expertise extends across multiple specialist lines of business, with a strong focus on casualty treaty. She was previously senior vice president, international casualty manager at Chubb Tempest Re in Zurich.

“We use technology to keep an eye on exposures.”

Innovation is key

With these strategic objectives, Kent said, innovation plays a central role in Axis Re’s strategy for managing emerging risks and she pointed out the importance of technology.

“Innovation is an important part of what we do as a specialist reinsurer, especially when it comes to handling complex and emerging risks. We use technology to keep an eye on exposures and track our aggregates across our products.

“By doing that, we can manage our capital and capacity in a way that keeps our balance sheet strong for the long term,” she explained.

“Innovation is very important for our specialty lines—for example, data is vital to understanding global crop cycles or staying on top of cyber risks.

“Using data and technology like this enables us to stay on top of current risks—and helps us prepare for what’s coming next.”

Kent touched on the balancing act of maintaining competitiveness while managing risk.

“The market is pretty stable from a rate adequacy perspective in lines of business where we participate. We’re always watching underlying rates from our clients and the broader market so we can make sure we’re striking the right balance,” she said.

“It is about being adaptable—adjusting when we need to—so we can support our clients while staying competitive without losing sight of good underwriting discipline.”

Addressing the evolving nature of risks, particularly cyber and climate, Kent explained how reinsurers were adapting. “Emerging risks such as cyber and climate risks are evolving quickly and changing how reinsurers operate,” she said.

“Cyber has been around for a while, but we’ve seen it transform over the years, especially with the rise of tools such as generative artificial intelligence, which is helping reinsurers sharpen risk assessments, pricing, mitigation and product innovation.”

Kent highlighted the role of government. “Climate risks are evolving quickly, and governments need to step up more in terms of managing those exposures.

“It is happening, but it’s slow, and that puts more pressure on the private sector to fill those gaps.

“For example, in agriculture, farms are using satellite imagery, drones, weather forecasting, and climate models to manage their on-the-ground exposures.

“We prioritise consistent communication and getting to know our clients’ evolving needs and challenges thoroughly,” she went on.

“For us, it’s about being more than just a capacity provider—we want to be a trusted partner. Strong relationships help foster transparency, which is essential.”

Looking to the future, Kent believes adaptability and innovation will be the keys to success.

“The risks we’re dealing with—whether they are cyber, climate-related, or geopolitical— are evolving quickly.

“Reinsurers that can adapt their strategies, use data effectively, and bring innovative solutions to the table will have a competitive edge.

“Being able to attract and deploy new capital in a smart way will be crucial, especially in lines that are under strain. And of course, strong relationships with clients will continue to be a major factor,” she concluded.

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