Association of reinsurance professionals in France 1 September 2010 APREF PRESENTATION.

Association of reinsurance professionals in France1

Association of reinsurance professionals in France

September 2010

APREF PRESENTATIONAPREF PRESENTATION



SummarySummary

pagepage

•• APREF Organisation and Tasks 3

•• APREF Actions and 2010 Global view 21

•• Paris reinsurance market place 26



• • CreationCreation

APREF was created in 2005 by merging 3 French reinsurance APREF was created in 2005 by merging 3 French reinsurance organisations in Franceorganisations in France

•• APREMAFAPREMAF ( (Association of reinsurance professionals in France)

•• ARFARF (French Reinsurance Association)

•• UREFUREF (Union of Foreign Reinsurers in France)



• ObjectivesObjectives

APREF main objectives areAPREF main objectives are:

•• To be a think tank on all reinsurance subjects linked to the French market activities

•• To be a discussion forum on the French market reinsurance topics and to debate with the reinsurance industry players

•• To monitor relations between reinsurers and Professional Associations, Public Authorities and any other market organisation

•• To contribute to the developing and the appeal of the reinsurance industry within the Paris market place

• • To maintain an international network of contacts and exchanges with other organisations or reinsurance markets

APREF works with all the market professionals APREF works with all the market professionals



• • ActionsActions

APREF main actionsAPREF main actions::

•• Gather the French Reinsurance industry market playersGather the French Reinsurance industry market players to analyse the legal, financial and technical changes regarding reinsurance

• • Contribute to reflexions on topics affecting reinsuranceContribute to reflexions on topics affecting reinsurance together with the insured, the insurers, the brokers and the public authorities

•• Work at improving knowledge on risksWork at improving knowledge on risks and their modelling to better define and develop the extreme and emerging risks insurability



• • ActionsActions

• • Improve the French reinsurance market transparency, efficiencyImprove the French reinsurance market transparency, efficiency, security, and competitivenesssecurity, and competitiveness

•• Communicate on the expertise and on the professionalsCommunicate on the expertise and on the professionals in the risk and reinsurance industries in France

•• Maintain a good relation and dialogue on common topicsMaintain a good relation and dialogue on common topics and best practices with other market places and foreign associations

APREF contributes to the market’s development APREF contributes to the market’s development



• Operating modeOperating mode

APREFAPREF:

•• Analyses the market topics with its membersAnalyses the market topics with its members, within committees, commissions and working groups according to a theme distribution

• • Consults the associate members in meetings Consults the associate members in meetings with the commissions and working groups

•• Exchanges with the professional organisations and the Public Exchanges with the professional organisations and the Public AuthoritiesAuthorities on current reinsurance themes

APREF activities are lead in compliance with the law on fair APREF activities are lead in compliance with the law on fair trading principles and regulationstrading principles and regulations



• • MembersMembers • • MembersMembers

•• Reinsurers

•• May be involved in all activities

•• Vote at General Assemblies

•• Contribute to notes and market positions published on the Website

• • Associate membersAssociate members

•• All professionals linked to reinsurance (search on added diversity)

•• May attend International and Paris market committees, non technical and catastrophe commissions

•• Kept informed on all actions but not bound by APREF positions

APREF is open to the whole reinsurance industry: reinsurers, brokers, APREF is open to the whole reinsurance industry: reinsurers, brokers, captives, GIE, run-off, consultants …captives, GIE, run-off, consultants …



• • A representative forceA representative force

APREF is the representative body of:

•• Around forty members and thirty associates::

•• The main reinsurers operating in the French market

• • Associate members, involved in the reinsurance industry and

its professionals in France

•• NearNear 95% of ceded premiums by the French market to

professional reinsurers in Life and Non Life

Comparing APREF with other reinsurance markets associations

• • The highest number of reinsurers as members

•• Higher diversity of associate members

•• One of the highest number of publications APREF represents around 95% of the reinsurance market in FranceAPREF represents around 95% of the reinsurance market in France



• • Members Members ALLIANZALLIED WORLD AMF ARCH RE ASPEN REAXIS RE EUROPE BERKSHIRE HATHAWAYCCR EVEREST RE

GEN RE HANNOVER RE

HISCOX LIBERTY SYNDICATES

LLOYDS MAPFRE RE MCR MILLI RE MS FRONTIER RE

MUNICH ReMUT RE NEW RE ODYSSEY REPARIS RE PARTNERREQBE INTERNATIONALRGAR & V SCORSECURA SIGNAL IDUNA RESIRIUS INTERNATIONALSWISS RE TOKIO MILLENIUMTRANSAMERICA RETRANSATLANTIC REVALIDUSXL RE EUROPE



• Associate MembersAssociate Members

ALD RE (SOCIETE GENERALE) AMS RE AON BENFIELD ASSURANCES ST HONORE SIACI ASSURATOME ASSURPOL AXA CESSIONS BOPS Avocats CALYON (CREDIT AGRICOLE) CARRAIG (SANOFI) CEFAREA (Centre d’arbitrage France) CHILTINGTON DES COURTIS DEWEY & LEBOEUF

GLOBAL RE GUY CARPENTERHMNLA REASSURANCE INTERCONTINENTALE(COVEA)MDBNASCO KARAOGLANOIRC (TOTAL)SEGS (Syndicat du run-off en France)TOWERS WATSONVERSPIEREN GLOBAL MARKETSWILLIS GRAS SAVOYE REWINSTON



• OrganisationOrganisation

BUREAU President : F. Vilnet, PartnerRe

Vice President : L. Pietropoli, Odyssey ReTreasurer : O. Monmoton, Hannover Re

General Delegate : B. Dollfus,

APREF

Paris Market Place & InternationalCommittees

Executive Committee

Technical Committee

Financial & LegalCommittee

Secretary GeneralJ.M. Szmaragd,

SCOR



Technical CommitteePresident : I. Hux, Swiss Re

Life CommissionPresident : G. Thivant, SCOR

Motor CommissionPresident : J.M Houisse, SCOR

Catastrophe CommissionPresident : H. Duke, Swiss Re

Construction CommissionPresident : J. Tuccella, SCOR

Credit CommissionPresident : P. Barrault, SCOR

Casualty CommissionPresident : P. Richard, Swiss Re

Agriculture CommissionPresident : N. Chatelain, Paris Re





Motor Commission

Annuities WGPresident: C. Nivarlet, Secura

Impact of Environment on Motor Liability WG

President : C.Studievic, Odyssey Re

Methodology: human assistanceassessment WG

President : F. Blanchet, SCOR




Life Commission

Long term Care WGPresident: P. Trainar, SCOR


OrganisationOrganisation

Catastrophe Commission

Natural Catastrophe WGPresident: L. Heroui, Hiscox




Casualty Commission

Environment Liability WGPresident: S. Lassa, SCOR



Financial & Legal CommitteeFinancial & Legal Committee President : Y. Besnard, SCOR

Portfolio transfers WGPresident : A. Bricard, SCOR

Finite WGPresident : X.Colonna, SCOR

Legal CommissionPresident: P. Isac, Munich Re




Paris Market Place & International Committees

President : J.L Gourgeon, Paris Re

Attractiveness CommissionPresident : A. Pin, PartnerRe



2010 Global view2010 Global view Reinsurance market: a transition periodReinsurance market: a transition period

•• The crisis consequencesThe crisis consequences:•• New regulation and tightening solvency rulesfor insurers and reinsurers

•• Common approach of insurers/reinsurers on market patterns and systemic risks

•• Solvency II with an increasing demand for reinsurance

•• APREF, a year of development onAPREF, a year of development on:

•• Communication and initiatives on market topics (reinsurance)

•• Developing private and public websites• Industrial risks Committee project

•• Search of new members and associates



2009-2010: Actions2009-2010: Actions

APREF has undertaken a number of actions, in particularAPREF has undertaken a number of actions, in particular :

•• Talks with the Treasury and politicians (Agriculture, Natural catastrophes, Bodily Injury & Medical hearings)

•• Notes on market topics such as Agriculture, Natural Catastrophes, Construction, Credit, LT Care, Civil Liability, Terrorism, Medical Liability…

•• Catastrophes Commission working on exposures in market branches

• Monitoring APREF-FFSA common position on Paris market place and proposals (Market Place High Committee), creation of a commission on attraction subjects

• Setting up new WGs on technical and legal subjects

• News and memos available on : apref.org



French market : post-crisisFrench market : post-crisis IssuesIssues

Paris Market Place•• Financial: development (Market Place High Committee, Paris Europlace)

•• Attractiveness: developing means, social and tax environment

•• Insurance: cooperation between insureds, insurers, brokers and reinsurers

•• Reinsurance: improvement (environment and the industry)

•• Security: a risks holistic view and improving the market place mechanisms

The State key role: insurability and protection of the insured asThe State key role: insurability and protection of the insured as

• • The last resort reinsurer (insurability and security)

•• Incentive to a better global cover (businesses and individuals)

•• A guarantee for fair treatment (all compensation schemes)

• • Risks monitoring and restricted liabilities (Public Private Partnerships)


Post crisis RegulationPost crisis Regulation

Catastrophe RisksCatastrophe Risks: •• Insurers/reinsurers: global approach (Controls, Rating Agencies)

•• Catastrophe Perils : better analysis and cover (terrorism, pandemic..)

Regulation/supervisionRegulation/supervision •• Regulation (G20, EC, IAIS): standards, practices, models review

•• Solvency II: reconsider the scenarios on market catastrophe

(CEIOPS)

•• Macro/micro supervision : monitoring of systemic risks (EU)

•• IFRS: limit volatility linked to accounting standards

Systemic riskystemic risk •• Risk considered as limited in reinsurance (G30 report, P. Volcker,

2006)

•• Global surveys (The Geneva association, IAIS, FSB)

•• Regulation to refine (EU, USA)



Reinsurance in France: facts and challengesReinsurance in France: facts and challenges Reinsurance market: FactsReinsurance market: Facts

•• World market, regulation and tax competition

•• Fragmented representation::

•• WorldwideWorldwide (GRF - Global Reinsurance Forum)

•• RegionalRegional (RAB - CEA Reinsurance Advisory Board)

•• LocalLocal (ABER, ABIR, APREF, DIMA, RAA, RRC)

French market:French market: •• Specific local characteristics

•• Cessions and underwriting: linked development•• On average, stands up better to the crisis

Challenges:Challenges: • Reinsurance: Reinsurance: profession, tool and strategic channel to develop

•• Local monitoring very important to develop and improve the Market placedevelop and improve the Market place

•• Aim for a local market to be transparent, competitive, secure and efficientlocal market to be transparent, competitive, secure and efficient



Paris Market Place Reinsurance : trendsParis Market Place Reinsurance : trends

Professionalisation and development of the reinsurance industryProfessionalisation and development of the reinsurance industry

•• Head offices, offices and subsidiaries of major reinsurers

•• Reinsurance brokerage

•• Captives (insured and insurers)

•• Cessions entities

•• Market place tools (GIE)

•• Run-off businesses

•• Consultants

Staff concentration around the Market’s major playersStaff concentration around the Market’s major players •• Reinsurers established in France

• • Reinsurance brokerage

•• In development: captives, Run-off



The PARIS Market Place: Insurance/ ReinsuranceThe PARIS Market Place: Insurance/ Reinsurance

2009 Estimation in volume of premiums2009 Estimation in volume of premiums

•• Non Life cessions Non Life cessions (to professional reinsurers(to professional reinsurers))• ~ 3,85 Bn Euros• 5th world market (3,5%)

•• Life cessions (to professional reinsurers)Life cessions (to professional reinsurers)• ~ 1,9 Bn Euros• 4th world market (4,5%)

•• Reinsurance underwriting (from France, by professional reinsurers) Reinsurance underwriting (from France, by professional reinsurers) • • ~ 5,5 Bn Euros

• 6th world market (3,5%)

•• Reinsurance brokerageReinsurance brokerage• ~ 0,175 Bn Euros• 3rd world market (5%)



Paris Market Place Reinsurance : developmentParis Market Place Reinsurance : development

Development of the Reinsurance market placeDevelopment of the Reinsurance market place

•• Ensure the reinsurance expertise and the quality of supervisionexpertise and the quality of supervision

•• Reinforce the Market Place regulation and tax securityregulation and tax security

• • Adjust the reinsurance taxationAdjust the reinsurance taxation •• As acts as a limitation to maintain the actual reinsurers and to

attract new players to the Market Place

•• While taking into account the reinsurance international profile

Association of reinsurance professionals in France 1 September 2010 APREF PRESENTATION.

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Transcript of Association of reinsurance professionals in France 1 September 2010 APREF PRESENTATION.