A strategy for applying our strong combination of capital, knowledge and brand
Swiss Re’s strategy remained unchanged in 2013. We aim to outperform our peers in Reinsurance and Admin Re®, as well as in our balanced asset management approach. We aim for a sustainable expansion in Corporate Solutions as well as in high growth markets and in funding longer lives and health. Our focus in 2014 will be on continuing to execute on this strategy and delivering on the previously communicated 2011–2015 financial targets.
In this context we have identified a series of important developments affecting the re/insurance world that are likely to influence our strategy over the mid-term.
We see four in particular:
- High growth markets will drive demand for re/insurance products. We estimate that by 2020 up to 45% of new re/insurance business premiums will be generated in high growth markets. Swiss Re already has solid positions in many of these markets and aims to expand them, both in Reinsurance and Corporate Solutions. These endeavours have been and will be complemented by selected investments in insurance or insurance-related businesses in these markets.
- ‘Big data & smart analytics’ will change the way of insurance underwriting, costing, pricing and marketing. The ability to gather and process information is profoundly altering the business landscape. This process will not stop at the insurance sector. We aim to turn big data & smart analytics into a source of competitive advantage and an essential part of our value proposition to our customers. Swiss Re has launched a number of pilot projects to test practical applications with our clients.
- New entrants in primary insurance will offer substantial partnership opportunities. Telecommunications and technology companies are already starting to enter primary insurance markets. These new entrants have access to a large customer base and interact with their customers frequently. Swiss Re is watching developments in this area and discussing strategic opportunities.
- Margin pressure as a result of alternative capital is counteracted by continued strong growth of natural catastrophe pools. Competition in natural catastrophe reinsurance is expected to become fiercer as capital markets investors expand. Swiss Re is actively pursuing multiple actions to mitigate the economic impact of market softening. At the same time, Swiss Re is actively engaging governments, NGOs, and traditional insurers to extend catastrophe insurance to segments which have not historically been covered.
Going forward and taking these major strategic themes into account, we aim to apply our strong combination of capital, knowledge and brand to be the leading player across diversified re/insurance risks and businesses.