In the storm-tossed sea of the hardening reinsurance market, brokers stand tall as steadfast lighthouse keepers, their guidance beam cutting through the darkness of uncertainty and complexity.
Just as lighthouse keepers ensure the beacon of safety shines its brightest, brokers can help cedents carefully and strategically raise their level of retention. This crucial action ensures that cedents’ reinsurance spend brings the greatest possible coverage, whilst ensuring that increases to retentions are comfortably absorbed by the business. Guided by the broker’s experience, cedents can find the courage and means to increase their share of risk, ensuring their resources are deployed effectively.
Cedents, guided by the unwavering beam of their broker’s insight, can set sail to new market horizons. Whether it’s discovering traditional reinsurers in previously untapped geographies or finding alternative shores of capital, such as Insurance-Linked Securities (ILS) funds, brokers shine their light on the most promising opportunities. Their wealth of knowledge helps cedents navigate uncharted waters, steering clear of dangers, and docking safely at promising ports.
When hard market conditions roll in, contract terms can often become as foggy as a storm-swept sea. As insurers seek to retake concessions given during softer conditions, cedents need a light to discern their path. Here, brokers act as the beacon, providing a clear, steady glow amid the fog of negotiation. They use their experience and understanding to highlight the terms that have the greatest impact on a cedent’s reinsurance purchase, helping them protect what matters most while simultaneously agreeing to the concessions needed to maintain strong relationships with their reinsurance partners.
Every lighthouse needs a power source, and in our analogy, that power is data. Without quality data, brokers cannot effectively illuminate the path for their cedents. It’s the fuel that enables brokers to assess the impact of higher retention, evaluate new markets, and prioritise crucial contract terms. Data, when harnessed and interpreted correctly, shines a spotlight on opportunities and risks alike, informing strategic decision-making and guiding the reinsurance journey.
Reinsurance, at its heart, is a relationship-driven industry, akin to the bond between a lighthouse keeper and the seafarers they guide. However, those firms that can light the way with empirical, unbiased data are the ones that will successfully weather the storm when market conditions harden.
Supercede, as a leading reinsurance technology platform, takes pride in providing the robust data solutions needed to fuel this guiding light. We believe in empowering brokers and cedents with the tools they need to navigate the ever-changing waters of the reinsurance market.
As brokers stand as the beacon of guidance amid a hardening market, they leverage data and technology to map the course, enabling cedents to stay on track. Here at Supercede, we’re thrilled to be part of this navigational network, providing tools that not only withstand the storm but also light the path to a more prosperous future.
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