Trend of protectionism should worry Baden-Baden delegates

The reinsurance industry should be concerned by the trends of protectionism and nationalism that are becoming increasingly prevalent, Ingrid Carlou, chief executive, Patria Re, told Baden-Baden Today.

Carlou said she fears that the world is entering a phase where protectionist policies will become increasingly accepted. “We are seeing more of the tendency worldwide for protectionism, populism and nationalism,” Carlou said.

“An idea held by many is that the world operates in waves of 30 years. In that context we saw the Thatcher era, and the globalisation era—what is next? Will it be the technological era or a national-protectionist wave?”

For Patria Re, she said, it is business as usual in the context of the company continuing to diversify and grow. At the end of 2015, it launched a Lloyd’s special purpose syndicate in partnership with Ironshore via its Pembroke Managing Agency. Patria Re SPS 6125, which was launched with an approved stamp capacity of £15 million ($18 million), underwrites a portfolio of short tail exposures for Latin American specialist lines of business.

She said the company is now focused on integrating its new operations while continuing to increase the relevance of the company to clients.

“In the last few years we launched a number of projects related to geographical diversification, expansion of the specialty lines, proximity to our markets and appropriation and deployment of new products and services. These activities need to consolidate and become second nature to our operation as we enhance the relevance of the company,” Carlou said.

She added that the Lloyd’s syndicate is proceeding as planned and she expects to close the year reasonably within budget thanks to no major losses, conservative underwriting and strict adherence to underwriting guidelines.

“It has been a year to test the waters. We have had the chance to really discuss things with Pembroke, our host and managing agency; we have also had the opportunity to better understand Lloyd’s, its expectations and modus operandi, as well as its rules and regulations. I would not say we are becoming locals but we are learning the game,” she said.