Monte Carlo
The chief executive officers of 11 major reinsurers meeting here announced the formation last week of the Global Reinsurance Forum, an international trade organization to represent their industry.
The founding members of the GRF are Gen Re, Hannover Re, Lloyd's, Munich Re, Partner Re, RGA, SCOR, Swiss Re, Toa Re, Transatlantic Re and XL Capital.
The announcement was made as the CEOs attended the "Rendez-Vous de Septembre" here, the annual international convention of insurers, reinsurers, brokers and reinsurance consultants.
The new group's objective is to promote a "stable, innovative and competitive reinsurance market environment on a worldwide basis," Denis Kessler, CEO of SCOR and chair of the Global Reinsurance Forum, said at a press conference.
He noted that the group acknowledges a number of trade associations–including the Reinsurance Association of America and the Association of Bermuda Insurers & Reinsurers–and has informed them about the initiative. "They do a good job," he said. "We'll work closely with them on reinsurance issues."
Mr. Kessler explained that the GRF will be a charter group made up of private companies–"an organization of CEOs–no cost, no fees, no staff. You will have a hard time to find us, but we want to be reactive to issues." He added that the group will meet in Monte Carlo each year.
Mr. Kessler said the forum will respect global cartel regulations and will not discuss prices, terms and conditions. He added that the CEOs will discuss matters such as U.S. tax issues.
Patrick Thiele, CEO of Partner Re, said the group's agenda will include the regulatory climate and banking issues.
Lloyd's Chair Lord Peter Levene said "this is a way of getting the major reinsurers together to talk together–a supplementary group." He added that the banking industry has "real problems, but our industry is in good shape–we want people to know this. The financial crisis has brought this to the forefront."
The new forum said it seeks to:
o Develop industry positions on regulatory, legal, tax and accounting developments affecting the reinsurance industry.
o Represent industry positions before relevant regulatory and supervising organizations, especially international bodies.
o Promote a worldwide, open and fair framework for the development of reinsurance markets.
o Advance the understanding of the value of reinsurance to the economy.
Mr. Kessler said in a statement that there currently is no "global representation for the reinsurance industry with the clear mandate to promote a regulatory framework that facilitates global risk transfer through reinsurance and other reinsurance-linked capital solutions."
He said "GRF will also work in conjunction with local or regional reinsurance associations on issues that have an international dimension."
Other GRF representatives at the press conference were CEOs Stefan Lippe, Swiss Re; Hiroshi Fukushima, Toa Re; Nikolaus Van Bomhard, Munich Re; Robert F. Orlich, Transatlantic Re; Ulrich Wallin, Hannover Re; Franklin Monhoss, Gen Re; and Mike McGavick, XL Capital.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.