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BMS Group Announces New Retrocessional Hire

BMS Group announced today it has appointed a new retrocessional expert to build out its existing BMS Re team, as part of its on-going growth strategy.

Glyn Hall, a former partner at Millers Insurance Services, will join BMS as Divisional Director of the BMS Re unit as soon as he is free of any contractual obligations. He will be based in the BMS London headquarters office.

Jonathan Morris, Managing Director, BMS Re, commented:

Glyn brings with him an impressive skill set and long-standing involvement in the retrocession market. We are delighted to welcome him to BMS and with his input we see the business going from strength to strength. His appointment reflects BMS’ continued commitment to investing in the best talent and willingness to capitalize on development opportunities in the market.”

Baden Baden – Loss reporting debate

Jonathan Morris, Managing Director BMS Retro Team, raised the issue of delayed loss reporting on accurate pricing during an interview with Intelligent Insurer Magazine.

Jonathan discussed how the ‘loss reporting creep’ that is experienced after larger catastrophes, such as the Japanese earthquake, make it difficult to finalise pricing. When full loss figures are not reported until after the renewal season is completed, it can cause numerous problems and is likely to cause global reinsurance premiums to rise in 2012.

Click here for the full article page 2.

Retrocession carriers – Interview Baden Baden

Jonathan Morris, managing director of the BMS Retro team was interviewed by Insurance Day’s Chris Munro before heading off to the Baden Baden Conference.

Jonathan talked about how retrocessional reinsurers, in light of the catastrophe-heavy first quarter of 2011, will need to make clients understand that prices will need to increase to cover the losses. Although he advised that these increases should be spread gradually over a number of renewal seasons to ensure they do not force companies out of the market. Alongside these increases, Jonathan also referred to the considerable talk in the market about other available capacity to complete programmes from both traditional and non-traditional sources.

Please go to the Insurance Day website for the full article

Pre-Baden Baden Review

Jonathan Morris, Managing Director of the BMS Retro team, considers the hot topics for debate at the upcoming Baden Baden Meeting.

I have been going to Baden Baden for the last four years and although relatively internationally focused, it has become an increasing important conference where after the early discussions of Monte Carlo Rendez-Vous; we finally get down to business and focus on client/contract specific topics. This concentration of market players in one location all with a focus on the renewal season ahead, to my mind makes Baden the real beginning of the new season.

BMS Re will be represented this year by myself and Georgina Glander. We will be hosting meetings between our clients and their markets. We also plan to see other existing and potential retro markets form Europe, Bermuda, Barbados and Scandinavia. These markets include hedge funds as well as traditional reinsurance.

I think the key discussions at Baden Baden will be focused around the poor results relating to the sizeable losses experienced in New Zealand and Japan earlier in the year and how these losses will impact throughout the market and potentially drive change. It is obvious that it will take more than one year to recoup such exceptional losses and to get clients’ portfolios back into the black.

Capacity is always a hot topic and this year talk will be around whether traditional or less-traditional forms of capacity emerging from capital-based market will be used to complete programs. These new players in the retro scene are good for clients, as a buyer they need a mix of traditional and capital markets to try to smooth out any volatility in pricing each year. There is an increase in choice for clients overall, be it Insurance linked securities (ILS), Industry Loss Warranties (ILW), traditional cover or capital markets.

In terms of the retrocessional market, it is early days regarding 1/1 renewals, but Baden will set the scene for the latter weeks in December when the decisions are made. Our biggest competitors are ‘net retentions’ and deductibles. For me, if retro reinsurance is too expensive; people will buy less of it and stay out of the marketplace for longer, which is not what we want.

I foresee loss reporting from cedants as growing concern for reinsurers and their retro reinsurers. Earthquake losses, in particular, take a long time to gather reliable data from, so both the Japanese earthquake and New Zealand have taken a long time to get accurate loss estimates to base any sort of pricing around.

Overall it is definitely going to be a tough renewal season for all concerned and I believe the above themes will dominate the industry conferences for some time to come.