Ten Ways the Insurance Industry has Changed ORIMS

Ten Ways the Insurance Industry has Changed ORIMS March 29 th, 2007 Mike Wills

Ten Ways the Insurance Industry has Changed n Bermuda Market Hot market with various new products that provide an alternative to the London market

Ten Ways the Insurance Industry has Changed n n Bermuda Market Natural Disasters Cat losses are increasing, and with a shortage of capacity, customers will look for alternative risk transfer solutions, and pay more attention to Risk Management

Ten Ways the Insurance Industry has Changed n n n Bermuda Market Natural Disasters Reserve Deficiencies Historically this has cost more than cat losses, and with risk becoming more unpredictable, this could become our next big cat loss

Ten Ways the Insurance Industry has Changed n n Bermuda Market Natural Disasters Reserve Deficiencies Reputation We have damaged our reputation in recent years, and we need to better connect with our customers to improve this

Ten Ways the Insurance Industry has Changed n n n Bermuda Market Natural Disasters Reserve Deficiencies Reputation Instability The ‘boom or bust’ market cycles have created an industry that has made it difficult to predict pricing, coverage and financial security

Ten Ways the Insurance Industry has Changed n n n Bermuda Market Natural Disasters Reserve Deficiencies Reputation Instability Globalization Increased globalization in our world has given our investors more choice for their investments, creating more challenges as well as opportunity for our industry

Ten Ways the Insurance Industry has Changed n n n n Bermuda Market Natural Disasters Reserve Deficiencies Reputation Instability Globalization Risk Management With the challenges in the insurance market and risks becoming more complex, there is a greater need for our customers to implement risk management practices

Ten Ways the Insurance Industry has Changed n n n n Bermuda Market Natural Disasters Reserve Deficiencies Reputation Instability Globalization Risk Management Society Our society has become more demanding, resulting in commoditization of our industry and our need to become more innovative on product and service. At the same time we are faced with a shortage of expertise

Ten Ways the Insurance Industry has Changed n n n n n Bermuda Market Natural Disasters Reserve Deficiencies Reputation Instability Globalization Risk Management Society Distribution The distribution of our products has become multichannel and global in nature, resulting in our need to become more cost efficient and ‘value-added’

Ten Ways the Insurance Industry has Changed n n n n n Bermuda Market Natural Disasters Reserve Deficiencies Reputation Instability Globalization Risk Management Society Distribution Diversification With all the challenges in the industry, insurers are looking to diversify their books of business which allows for balancing of overall results