WTW: Reinsurance demand being driven by earning volatility fears
Willis Towers Watson | July 09, 2018
Insurers are increasingly buying reinsurance as protection for their earnings, guided by “risk appetite statements” which optimize capital management and profitability targets, a survey by Willis Towers Watson has revealed. According to the Global Reinsurance and Risk Appetite Survey Report 2017/2018, 80% of insurers consider their risk appetite statements when defining their reinsurance strategies. This is due to pressure from investors, which make insurers less tolerant of missed earnings targets.