Introduction
Last week, Swiss Re Corporate Solutions unveiled a new organisational structure to serve corporates and brokers more effectively at the country level. The new structure, effective June 1, consists of nine market units, each led by a market unit head operating locally.
Understanding the Market
Ivan Gonzalez (pictured), CEO of Swiss Re Corporate Solutions, highlighted how the role of risk managers has evolved. They now help corporates navigate complex risk environments beyond just negotiating insurance terms. Risk managers are expected to guide on risk mitigation and required insurance types.
The new organisational structure addresses the need to be closer to clients and brokers, maintaining relevance by providing localised service.
Impact on Brokers
Gonzalez noted that the commercial insurance space is competitive, with 40 to 50 companies vying across different geographies. This benefits customers and brokers, allowing them to find optimal capacity at the lowest price.
For brokers handling commoditised business, Swiss Re Corporate Solutions may not always be the ideal partner. Instead, the firm is focusing on brokers who face complex client demands.
Clarity and Responsiveness
Swiss Re Corporate Solutions aims to provide clarity and security to brokers, allowing them to support their clients efficiently. The organisational changes are intended to ensure brokers receive quick and clear support.
Financial Performance and Strategic Vision
The announcement coincided with Swiss Re Corporate Solutions reporting a net income of US$829 million and a combined ratio of 89.7%. Gonzalez stated that the firm aims to continue evolving despite a strong financial year.
There is a strategic vision to be the specialised risk partner of choice globally by delivering differentiated solutions through the nine market units.
Differentiation and Expertise
Gonzalez identified two key areas for differentiation: International Programs and Alternative Risk Transfer. The former supports multinational companies with global insurance needs, while the latter involves parametric solutions, captive solutions, and cat bonds.
Swiss Re Corporate Solutions aims to leverage its pioneering position in these areas to offer competitive advantages.
Conclusion
The strategic ambition is for each market unit to deliver tailored solutions, ensuring business continuity and responsiveness. The focus remains on local delivery of services, with clients, brokers, and company representatives all operating at the country level.
