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Alternative reinsurance solutions and whether they are really effective?

The 10th IIG Insights Session was Sponsored by Munich Re.

The first speaker was introduced, David McGuire a seasoned reinsurance and insurance executive who has held various positions of management and board level responsibility in the insurance and reinsurance industry, focusing on the areas of capital management and underwriting. With 23 years of international reinsurance market experience, David joined the Munich Re group in 2014 as a senior manager within Capital Partners. Capital Partners is a worldwide team working within the Munich Re Group, comprising of experts focusing on capital enhancement through structured prospective and retroactive reinsurance as well as alternative risk transfer solutions in the non-life and capital markets focus areas. David has a Degree in Economics from the University College Cork and a Professional Diploma in Insurance from the Irish Insurance Institute.

Munich Re Capital Partners, a global organisation, working in conjunction with Munich Re, utilise their international expertise to provide Alternative Risk Transfer solutions to their varied clients.

David reiterated that by understanding the clients motivations, Munich Re Capital Partners is able to match the clients needs to the many varied solutions they have. 

The belief is that reinsurance can do more for clients than pure traditional risk transfer solutions.  This is effected by taking a holistic view of clients motivations (which can be unique and unconventional); combining different insurance and reinsurance products to cover a variety of risks; customising these solutions on the back of global experience and knowledge; all backed by Munich Re’s unrivalled financial strength and reputation.

Munich Re Capital Partners goes beyond pure risk transfer to optimise their clients capital performance.


The areas that can be addressed through Reinsurance as a Capital Management Instrument are:

  1. KPI Optimisation – Reinsurance can be efficiently used to impact Capital; Earnings; Liquidity and protect KPIs in a volatile business environment
    1. Optimise Retention and Reinsurance Structure
    2. Gain Business Plan Protection
  2. Event Driven Solutions – Reinsurance can be used within disaster risk management to mitigate longer term consequences of disasters such as natural catastrophes or epidemic and pandemic outbreaks
    1. Advance in Disaster Risk Management
    2. Support Corporate Reorganisation & M&A
  3. Regulatory Solutions – Reinsurance can be used as a substitute for capital financing and meet the demands of insurance regulation solvency issues
    1. Manage Capital & Shareholder Value
    2. Benefit from Solvency & Rating Support

Munich Re Capital Partners utilise data to build effective models which are stress tested; draw on leading credit rating systems; and provide auxiliary services such as financial analysis automation and development of KPI Monitoring Dashboards amongst others.

The second speaker was Katheho Paballo Makupo – an experienced manager within the Non-Life Actuarial team with more than 6 years’ experience in the short term and life insurance industry. She is an Associate Actuary who holds a Hons B.Sc focused in Actuarial Science from the University of the Free State. In addition she manages the financial solutions and innovation team at Munich Re driving and pro-actively generates new business opportunities beyond traditional reinsurance with a strong focus on structured reinsurance and corporate finance. She is an award winning philanthropist; Ted Speaker, published author, M&G top 200 Young South Africans; as well as an IIG Roots and Wings Mentor, Head of Communications for the Short Term Insurance Committee and the Head of Outreach for the Actuarial Women’s Committee.

Paballo provided in depth insight into SAM and the three pillars it is based on as well as providing models which illustrated how a business could optimise its KPIs using reinsurance and alternative risk transfer solutions to ensure it meets SAM requirements and remains profitable.

David then went on to provide insight into the solutions Capital Partners are able to provide as well as the benefits of teaming up with them closing off with statement to ponder:

What matters are most important to you and what can Munich Re do you to assist you with it?


Antonia Oakes the MC for the webinar closed off the session with a brief Q&A as well as a vote of thanks to the speakers, sponsors and attendees.

Article written by: Linroy Peters