Retentions will be key and we’re well positioned, says AM Re & ASIC CEO
Retentions will be crucial in 2024, especially in the program area, according to Shevawn Barder, Chief Executive Officer (CEO) and Principal of AM RE and AM Specialty Insurance Company (ASIC), given that the challenging market is anticipated to continue.
“We are in an amazing cycle right now, and it is obvious that the market will be challenging in 2024,” said Barder. Thus, the timing of the company’s start was excellent.
“Launching the business and being in such a strong position within a year is an amazing accomplishment for us. when space is so limited, especially as we build to one to one.
“Retentions are going to be crucial when we look at the market approach, especially in the programme sector, where we’re very substantial. It will be quite difficult to write business that you want to keep, and I’m not sure how much of the market for programs is set up to handle that, she continued.
Asserting that the company is “well positioned” and that retentions have been addressed with confidence, the CEO emphasized that it is an underwriting-first business.
“I genuinely mean that. We feel that it’s crucial to any program with whom we collaborate that we keep a significant portion of that program, say, 30% to 50%. And since the reinsurance market is looking for that, I believe that will send a really positive message, she added.
In response to a question on RVS in particular, Barder stated: “One of the reasons I’m here is to attempt to find some reinsurance partners that can help us as we move into 2024. I consider myself really fortunate that we truly have such a clean firm without any legacy difficulties, therefore I’m looking forward to 2024. We will definitely be entering the market in a significant way.
Now that we are able to use our paper, we will seek to establish strategic partnerships with direct writing MGAs so that we can help them develop their business plans and gain some momentum in the market.
Barder recognized that reinsurance will continue to be costly and challenging to get.
However, she added, “In actuality, our book doesn’t contain any cat writing, so we’re in a good position with regard to that.
Barder said, “I think there is still a lot of excess fronting capacity available, but it’ll be fascinating to see what happens as 2024 develops, since no longer will the firms be able to just write a small line to sustain the business, I think that model is done.
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