LONDON – July 9, 2002. Electronic trading in the reinsurance industry has gained a growing
acceptance in recent months according to new membership statistics published by
Internet-based trading platform inreon.
In the first six months of 2002 the number of companies
registered to use the system increased by more than 100% and several target markets are
now displaying a critical mass of membership.
Reinsurers, insurers and brokers must all sign a membership
agreement before commencing trading on the inreon platform. This document ensures risks
can be properly submitted, quoted and bound online.
To date more than 70 companies from 16 countries across
three continents (Europe, North America and Asia) have signed the agreement in order to
begin trading. These include several multinational insurance groups, brokers and a panel
of 14 blue-chip reinsurers. Combined, reinsurance groups receiving submissions via the
platform represent more than 50% of global capacity available from the world’s top 25 reinsurers.
“The inreon concept has received a positive reaction
from many different quarters and that is now being demonstrated in widespread support for
the platform,” commented Kaj Ahlmann, Chairman and Chief Executive Officer.
“This growth in membership means we are now moving towards a genuinely global
electronic marketplace for the reinsurance industry.”
A number of target markets have already shown a full
commitment to electronic trading via inreon. In Spain for example ten of the country’s
leading insurers plus two brokers have all signed membership agreements in order to buy
reinsurance capacity online, while Mapfre Re, the country’s leading reinsurer is quoting business.
Meanwhile in Greece six of the country’s most important cedants and leading broker have joined.
According to fire and natural forces premiums written during 2000, inreon members represent more than 50% of
all business conducted by the market’s top ten players.
Six of the top seven non-life insurers in the Netherlands
are members of the platform representing over half of the total non-life market. And in
Taiwan seven of the top eight insurance companies have also signed membership agreements.
“A number of important markets have shown a marked
enthusiasm for online trading and impressive willingness to embrace new technology,”
added Kaj Ahlmann. “These early adopters are already experiencing the benefits of
expanded distribution, greater trading efficiency and improved management information.”
Recent technical improvements to the inreon platform have
included the introduction of a multi-layer capability for property products. Enhancements
have also been made to make it easier for reinsurers to provide feedback on risk
submissions and to more conveniently display contact information for individual underwriters.