mutual insurers

Customised or tailored reinsurance arrangements, alternative risk transfer (ART) solutions and insurance-linked securities (ILS), alongside insurance technology developments (insurtech) are all seen as key to help mutual insurance firms grow their businesses and compete.

Low global interest rates and certain Solvency II requirements have hindered the profitability of mutual insurers in Europe, leading some to take advantage of the softening landscape and influx of alternative reinsurance capital, according to A.M. Best in a recent report.

Third-party and alternative capital’s interest in the reinsurance market, which has helped to put pressure on reinsurance prices resulting in favourable buying conditions, is set to benefit mutual insurers at the upcoming January renewals, according to reinsurance broker Willis Re.