How some reinsurers stand apart
Flaspöhler, part of NMG Consulting, conducts an annual, global study designed to illustrate the competitive positioning and value proposition of reinsurers in relation to their peers. Here, we reveal how the top reinsurers fared when brokers and insurance executives across Latin America were surveyed.
Flaspöhler (part of NMG Consulting—a specialist global consulting firm, focusing solely on the investments, insurance and reinsurance markets) conducted this global study drawing on the views of nearly 3,500 executives from over 1,200 companies.
Flaspöhler | NMG Consulting produces a Business Capability Index (BCI) as a lead metric, designed to provide insight into a reinsurer’s (or broker’s) competitive positioning within any given segment. The BCI is a composite of many factors, including strength of partnerships, ease of doing business, innovation, client management, underwriting expertise, and capabilities within lines of business.
As such, BCI gives a sense of a competitor’s overall offer and value proposition in relation to its peers, and is particularly insightful when contrasted against relative pricing or financial strength. Price competitiveness and financial strength are not included in BCI, which ensures it is strictly a value measure.
The results may be eye-opening to many. A quick glance at the BCI chart shows a strong correlation between value positioning and market penetration—perhaps a sign that customers prefer to work with capability-laden reinsurers.
Flaspöhler | NMG Consulting stresses that a BCI is a snapshot at a moment in time, although it can also be used to track changes over time. Those competitors with high BCI ratings can—under ‘normal’ conditions—reasonably be expected to trade favourably, whereas those less well-rated by customers would typically need to rely on price differentials and/or superior financial strength to hold ground competitively.
The data supplied in these pages is a high-level summary of the underlying data including the 11 metrics that underpin the BCI. For the full detail of how reinsurers globally fared in each of these criteria, please see the October issue of Intelligent Insurer.
How LatAm brokers rate reinsurers
For this part of the study, Flaspöhler | NMG Consulting interviewed reinsurance brokers across Latin America and used this feedback from brokers to calculate a Business Capability Index (BCI) score for each reinsurer.
The survey revealed that reinsurance brokers in Latin America see Munich Re and Swiss Re are the clear value leaders for reinsurance brokers.
XL Catlin, Hannover Re and Lloyd’s are also viewed as offering high value by brokers, while other reinsurers (including SCOR and TransRe) are well positioned to see continued success in Latin America.
LatAm BCI (Brokers Treaty & Fac)
Market penetration: proportion of companies citing a business relationship with a reinsurer in a given year
How LatAm insurance execs rate reinsurers
For this part of the study, Flaspöhler |NMG Consulting interviewed insurance executives in Latin America and used this feedback to calculate a BCI score for each reinsurer specifically in relation to treaty business.
The survey revealed that insurance executives in Latin America see Munich Re as leading a group of several reinsurers who are viewed by insurance executives in Latin America as offering high value (BCI rating).
Swiss Re, Hannover Re and Mapfre Re also earned superior BCI scores and significant market penetration, while several reinsurers (SCOR, XL Catlin and TransRe) are also well positioned for continued market success.
LatAm BCI (Insurers Treaty)
Market penetration: proportion of companies citing a business relationship with a reinsurer in a given year
A version of this article has previously appeared in Intelligent Insurer.
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