Navigating the European reinsurance market

Howden Re’s Sebastian Cook outlines the key trends influencing the European reinsurance market.

How would you describe the current landscape for insurers and reinsurers in continental Europe?

The European market is at a crucial juncture, driven by an evolving set of risks and external pressures. One of the main challenges is the increasing frequency and severity of natural catastrophes, particularly secondary perils such as floods and hailstorms, which have impacted key areas including Bavaria and northern Italy. These events are stressing the importance of rethinking traditional risk models and embracing innovation in risk management.

Political and economic volatility also play a significant role. In places such as South Africa and New Caledonia, we’ve seen how political unrest can quickly elevate the risk environment. The geopolitical tensions we are witnessing across the globe are starting to manifest more directly in Europe, making it crucial for insurers and reinsurers to remain agile and forward-looking. There’s a need for flexibility in reinsurance programs, combining traditional solutions with more innovative approaches to protect clients from these interconnected risks.

What are the most significant trends shaping the future of the European reinsurance market?

Climate change is undoubtedly at the forefront of the challenges facing the industry, with secondary perils causing more widespread damage than ever before. This requires a fundamental shift in how we approach risk management. Our report, Beyond the Horizon: Shaping the Future of Risk, highlights how increasing climate volatility is demanding more customised products that can address these emerging threats.

Technological advancements are also reshaping the landscape, particularly in liability lines such as motor reinsurance. With the rise of autonomous vehicles and the growing liability around new technologies, reinsurers will need to develop new solutions to manage these risks. We’re focused on designing solutions that can anticipate these shifts and help clients navigate the complexity.

Another trend is the increasing role of capital markets in reinsurance solutions. We see this as essential for providing the capacity needed in today’s environment, where traditional reinsurance alone may not be sufficient to cover the growing risks. By integrating reinsurance with capital markets expertise, we are giving clients more options and greater flexibility in how they manage risk.

Can you elaborate on Howden Re’s planned launch of a new motor reinsurance capability and the investment you have made into capital solutions?

Our expansion into motor reinsurance is part of a broader strategy to address the changing nature of risk in Europe. The motor market is evolving rapidly, driven by both technological innovation and regulatory shifts. We’ve seen how the advent of autonomous vehicles and the growing importance of data are reshaping liability lines, and this requires new approaches to underwriting and risk management. Our investment in this space reflects our commitment to staying ahead of these trends and providing clients with the tools they need to navigate this complex environment.

On the capital solutions side, we’re focused on providing bespoke products that combine traditional reinsurance with capital market solutions. This is particularly important in today’s climate, where risks are becoming more interlinked and complex. By offering prospective capital solutions, we’re giving our clients the ability to manage both immediate and long-term exposures, whether they’re facing natural catastrophe risk or political violence. It’s all about providing flexibility and ensuring that our clients are equipped to handle the challenges of tomorrow.

As well as specific capabilities and lines of business, we’re also investing in our regional teams. For example, we have just announced the build-out of expertise in the DACH region. Germany is the biggest economy in Europe and the expansion of our team is a key strategic step for Howden Re as we broaden our footprint and strengthen the service we can offer to local and global clients.

What role does innovation play in Howden Re’s strategy for the European market?

Innovation is at the core of what we do. We recognise that the reinsurance market can no longer rely on traditional methods alone to solve today’s complex problems. For us, innovation comes from our people. That’s why we’ve put so much emphasis on attracting top-tier talent from across different industries, whether it’s reinsurance, capital markets, or investment banking. This diversity of expertise allows us to think creatively and design solutions that are tailored to the specific needs of each client.

We’re also leveraging technology and advanced analytics to better understand risks. For instance, we’re using exposure management tools to help clients identify and quantify the potential impact of climate-related events or political instability. This helps us create more accurate pricing models and ultimately deliver better outcomes for our clients.

How would you sum up Howden Re’s approach to supporting clients in the European market?

At Howden Re, we pride ourselves on being more than just a traditional reinsurance broker. We’re a partner that helps our clients navigate an increasingly complex world by offering integrated solutions that combine reinsurance capacity with capital markets expertise. Whether it’s through innovative motor reinsurance products or advanced parametric solutions for political risk, we’re committed to delivering the right solutions for each client’s unique needs.

Our approach is deeply client-centric, and it’s built on collaboration, both internally across different teams and externally with clients. We’re constantly looking ahead, ensuring that we’re prepared for the next cycle of challenges and opportunities.

Sebastian Cook, deputy CEO of Howden Re International