- Insurance for insurance companies
A brief history of reinsurance from September 11th to nowadays
Some events mark an era and redefine the way we see the world. In the still brief history of the 21st century, the September 11th attacks were a crucial turning point, as dramatic as well as unexpected. The impact of the terrorist attack on the Twin Towers in New York also heavily affected insurance and reinsurance companies: the sector had underestimated terrorism risk, and many companies found themselves unprepared to manage events of this kind.
Since then, insurers and reinsurers have paid more attention to emerging risks, be these social, environmental, technological, economic or geopolitical. In this constantly evolving scenario, Cattolica has decided to equip itself with a structure dedicated to ‘special risks’ – CattRe. CattRe specialises in the management of spatial, aviation, weather, marine, large property and casualty, sport and environmental risks. Alongside CattRe’s expertise, which is unique in continental Europe, reinsurance firms are an essential addition to underwriting activities since they make it possible to reduce capital requirements through a mutualisation of risk at international level. Such as, for instance, through CIAR*, a virtuous example of risk diversification between insurance firms from various countries.
This topic and many more were covered at the third Reinsurance Day, the annual business meeting organised by Cattolica for its reinsurance partners, which was attended by 65 guests from 34 internationally leading reinsurance companies. During the meeting we asked our guests to show us the meaning and importance of this business, which was happily described as “insurance for insurance companies”.
*CIAR is a company founded in 1974 by three players: Spanish company Mapfre, Belgian company Assubel (now Allianz Belgium) and Dutch firm Ago (now Aegon). Two years later, in 1976, Cattolica became a partner and shareholder of CIAR. CIAR’s main purposes are to allow its various partners to develop a mutual reinsurance system through a reciprocal transfer of business, and to allow each partner to carry out an efficient territorial diversification and exchange of know-how. It has over twelve members to date.