Gordon Craig, CEO of Howden Re Fac, spoke with Igor Best Devereux, CEO of eReinsure, about the future of the facultative reinsurance market and the impact of artificial intelligence (AI) during an interview for The Insurer TV at RVS.
Craig highlighted the growing role of AI in reinsurance. "AI is the future, and we want to share new ideas with our clients and learn more together. But AI are tools, and the fundamental element of our business remains the interaction between the brokers and the clients. We want to use these tools to help us invest in more frontline talent so that we remain fit for purpose," he said.
The discussion addressed how reinsurers are handling increasing amounts of data, complex risks, and volatile global conditions. These factors are leading companies to develop and adopt AI-based tools aimed at improving pricing accuracy, optimizing portfolios, and maintaining competitiveness in both treaty and facultative reinsurance.
Craig noted that Howden Re currently processes 50-60% of its facultative revenues through automated systems.
He also commented on recent market trends: "Since the turn of the year, rates from the direct side have clearly softened significantly. That has an inevitable impact on the fac market, particularly around the D&F property and downstream energy. But this creates opportunity for fac, we’re fortunate that our underwriters and our brokers are quick to adapt and come up with new solutions and opportunities."
The full interview is available on The Insurer TV website.