December 2022 Edition

Reinsurance: Tough Renewals ahead

When asked the question: How was your year”, it seem like the last few years solicited the same response from most people: “I would like to see the back of it”.

My submission is that we are living in a new normal. Not because of COVID-19 but rather due to the fact that global and local social, political and economic dynamics have changed.

We have now realised that we are a global village and the wellbeing of one is directly linked to the other, again, politically, socially and economically. The knee-jerk reaction have been a lager mentality and the rise of nationalism, once again.

My main take-outs from the year is that effective risk management strategies need to be proactively put in place, your eggs should never be in one basket (supply chain, economic resource, environmental) and you should be flexible in terms of your expected outcomes.

This is also where our industry has the most important job ever: Ensuring sustainability, providing risk advice and mitigating risk when life’s outcomes are negative. I leave you with this thought: “When your body, family, company, country, is full of stress and anxiety, it is trying to tell you it is time for some changes”.