Swedish risk managers and brokers do not expect their local market to harden over the coming year but rather maintain the flat to mildly soft conditions witnessed at recent renewals.
Nordic insurers will need to make bigger adjustments to their investment portfolios than their European peers as a result of Solvency II, according to Fitch. The changes will not need to be made immediately however as the rating agency believes the sector has enough capital to meet the capital requirements of the Directive.
Insurers, and ultimately policyholders, are being made to pay the price for the financial crisis and resultant state bailouts, according to experts at Swiss Re’s Nordic Risk & Insurance Summit (NORIS). The low interest rate environment now needed to help soften the blow for borrowers will reduce the investment income of insurers and force the industry to raise prices in order to compensate for low investment returns, they warned.
Swiss Re’s Chief Economist, Thomas Hess, has warned that the insurance industry is in danger of being forced into investing in low-risk low-yield investments by Solvency II and in particular government bonds. This will result in a lack of investment income for insurers that will ultimately hit their bottom line and likely lead to increased premiums for buyers, he added.
The Nordic region suffered rising losses last year as both bad weather and a series of industrial fire losses hit local insurers’ numbers. But reinsurance capacity remains plentiful and even rising and so buyers of both primary and reinsurance coverage enjoyed a stable year end at worst and the outlook remains calm.
Risk managers must learn how to communicate effectively if their true value is to be realised by employers argued a communications expert at the SWERMA conference. Ben Norris reports.
Charlotte Barnekow, Chairwoman of Sweden’s risk management association, told Adrian Ladbury about the key debate at this year’s conference and plans for the group.
ERM is becoming the norm in Sweden and risk managers should not have to constantly prove its value. Ben Norris reports.
The Institute of Risk Management and the Norwegian Risk Management Association, NORIMA, have announced a joint education initiative whereby NORIMA will promote the IRM’s qualifications to its members at a preferred partner rate.
Norwegian risk managers seek to work with Swedish and Danish neighbours following acceptance by FERMA.