Swiss Re Corporate Solutions sees growing demand for innovative solutions

Swiss Re Corporate Solutions expects continued growth in its alternative risk transfer business as risk managers seek solutions to increasingly large and complex risks, according to the insurer’s new chief executive. The Zurich-based insurer will play to its strengths, seeking to meet the changing needs of corporates through innovative solutions, said Ivan Gonzalez, CEO of Swiss Re Corporate Solutions, who succeeded Andreas Berger in the role in July. “Swiss Re Corporate Solutions is doubling down on differentiation. We have a history of serving the corporate space that goes back 30-40 years, and having formed Corporate Solutions in 2010, we are now an established specialist partner for large corporates. For us to make a difference we need to more into areas where we can make a real difference, and move away from highly commoditised markets. There are plenty of insurers that can do that, but only a few that can meet the need for innovation,” he said. Speaking to Commercial Risk at the Ferma Forum in Madrid, Gonzalez noted that insurance market conditions are changing at a time of heightened demand for risk transfer solutions. Almost all companies are having to deal with increasingly complex risks, notably climate change, geopolitical instability and technological advances. While at the same time, the role of the risk manager is expanding, focusing more on integrated risk management and not just insurance purchasing, he said. “The core debate in the industry is about how much of our clients’ needs we are addressing. As the world gets more complex, the insurance industry is pressured to rise to that challenge. For example, cyber requires the insurance industry to create solutions, but some of these new and emerging risks do not provide enough transparency from a qualitative and quantitative basis for the industry to immediately deploy more capacity and solutions,” said Gonzalez. “It’s an evolution. If you consider cyber, there is more capacity today than there has ever been and more solutions. But the question is, do those solutions and capital address the demand? And the answer is no; there is still work to be done,” he said. According to Swiss Re Corporate Solutions’ CEO, the focus of clients is shifting to innovation. As risks have become more complex and intangible, corporate budgets are more flexible, while buyers are more “solutions focused” and want to work with insurers on innovative solutions, said Gonzalez. “Capital is still important, but innovation is becoming more relevant for clients today – the ability to do research and development with clients is crucial. Insurance capital needs to go more and more into research and development,” he said. With growing demand for more innovative solutions, Gonzalez expects further growth in Swiss Re's alternative risk transfer business, including parametric solutions, captives and catastrophe bonds. “Penetration in this segment is still relatively low but the trend is clear. It will be a big driver and more important part of the market going forward,” said Gonzalez. The alternative segment has grown faster over the last five years than the traditional market, he added. Parametric solutions, for example, were not even on most risk managers’ radars ten years ago, but now they are ranked as the fourth-most popular form of risk financing, according to the 2024 Ferma survey. Gonzalez also expects interest in corporate catastrophe bonds to increase as corporations get bigger and risk financing matures, potentially moving up into the top five risk transfer solutions over the next few years. The “evolution” in Swiss Re Corporate Solutions' strategy will see the insurer continue to grow, according to Gonzalez. “Our growth trajectory will see us focus on areas where growth is faster. I expect we will continue to grow, mainly through meeting increasing demand for innovative risk management solutions over time,” he said. “Right now, even after the recent hurricanes in the US, there is a balance between supply and demand. And while there are some areas where supply is higher, demand for capital and risk transfer solutions is high, and will continue to remain so,” said Gonzalez. While Swiss Re Corporate Solutions expects growth in alternative solutions, it will continue to support clients in traditional property and casualty lines, he added. “We are more cautious of highly commoditised parts of the industry, and we have a bearish view of US casualty, but we recognise that clients need support,” he said. “In general, we have a healthy risk appetite for nat cat and fire property risks, where we are a leading player. As long as market conditions are adequate, we are happy to deploy our capital,” said Gonzalez.

Swiss Re Corporate Solutions sees growing demand for innovative solutions

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