IGI’s Jabsheh: “Maintaining discipline” to maximise areas of opportunity

The big shift in reinsurer sentiment in the last 18-24 months has been reflected in the actions they've taken, according to Waleed Jabsheh, president and CEO of IGI.

Talking to The Insurer TV during the Rendez-Vous de Septembre in Monte Carlo, Jabsheh was keen to highlight stability in the reinsurance market as the main theme for delegates.

“The main thing we’re saying is that this market is here to stay, at least for the near term,” he said, adding that he thought the 1.1 renewal period would be relatively straightforward and stable.

Discipline in marine and aviation

While the industry has seen large losses in the marine space this year, Jabsheh told us that the underwriting strategy to limit exposure “boils down to discipline”.

“You pick what you think is going to deliver the results you want, and you stay away from those parts that won't. So, given the loss activity, there's still lots of opportunity in marine liability going forward, and in marine cargo and ancillary coverages that come with it,” he said.

Meanwhile, “competition, plain and simple” was the reason IGI pulled back from aviation this year.

“In recent quarters competition has intensified, although the reinsurance and retro market has hardened and is a lot more attractive than writing it on a primary basis. So, we're capitalising it on the reinsurance side, but on the direct side, we're just maintaining discipline,” he said.

No plans for a syndicate just yet

Recently IGI acquired a box at Lloyd's, which is often a step in the direction of starting a syndicate, though such a move is not in IGI’s immediate plans, according to Jabsheh.

“It's not that we don't necessarily want to start a syndicate; we just don't want to start it now,” he said. “We've got a great network of offices around the world that we're focusing on developing and really capitalising on the opportunities they provide. And if a Lloyd’s syndicate is in our future, then we'll consider it when we feel the time is right, if there is a time,” he said.

“For us, it's just another distribution source. We rent a space for six underwriters, and we get to take advantage of the intelligence they gather talking to their fellow underwriters and brokers,” he added.

Facultative market well placed

Despite changing reinsurance dynamics, the facultative reinsurance market is in a good place, according to Jabsheh.

“As facultative reinsurance buyers I can say that, from the difficulty sometimes in obtaining coverage. Eventually it's a cycle, and things will get better from a buying perspective. What it boils down to is pulling the right levers at the right time,” he said.

“The primary space was getting more challenging, and so it's just shifting focus to those areas where we believe the returns are going to be best.”

Because IGI primarily writes short-tail lines in the US, the significant casualty long-tail lines there are not a burden as “we've purposely stayed away from it”, Jabsheh said.

“Our long-tail book is quite sizable, but it's predominantly written on a ‘claims made’ basis. We stay away from third-party liability loss occurring business, except for a healthy portfolio in the Middle East. Outside of that, we don't have much appetite for that really long-tail business,” he added.

Watch the 9-minute interview with IGI’s Waleed Jabsheh to hear more about: