XL and the broader AXA Group, we are committed to help do
Cooper agrees that the private re/insurance market can provide
the necessary cover to help close the protection gap. He believes XL
Group is better positioned to do this now it is part of the wider
AXA Group, the chairman of which, Denis Duverne, also chairs the
Insurance Development Forum, whose primary aim is closing the
He says the reinsurance arm of the company is increasingly
working with parts of the AXA group such as AXA Climate,
which specialises in parametric solutions, to find ways of helping
“The approach must be a collaborative one across the industry. No
reinsurer or broker can solve this or do these very complex deals on
its own,” he says.
In September AXA XL revealed changes to its reinsurance structure.
From January next year, it is reducing its four reinsurance underwriting
regions to three. The London and Bermuda reinsurance platforms
will be merged into a new region, Global Markets, while the North
America and International regions will continue to focus on clients
and brokers in those particular areas. AXA XL’s reinsurance claims
and operations functions will be centralised.
“The approach must be a collaborative
one across the industry. No reinsurer
or broker can solve this or do these
very complex deals on its own.”
Cooper says the primary aim of the changes is to make it easier for
clients to access the business, and allow underwriters more time to
work directly with clients.
“It is a more customer-centric structure,” he says. “The global risks
business will deal with the very complex stuff and our regions will
be better able to deal with clients.”
He notes that chief underwriting officer Jon Gale will have an
important role to play directing business to the right place across
In terms of rates, he says, any changes vary by client but overall
AXA XL is seeing increases of 2 to 3 percent in aggregate. He says
rates in the primary market are increasing more quickly, suggesting
that there is no shortfall of capital, rather that existing capital is
simply seeking a better return.
Cooper says the reinsurance business is enjoying the benefits of
being part of the AXA Group. As well as being able to access its
expertise and global reach, it has been upgraded as a result: to ‘AA-’
from ‘A+’ by S&P Global Ratings, and to ‘A+’ from ‘A’ by AM Best.
“Security remains very important to cedants so this is key,” he says.
Charles Cooper is chief executive of reinsurance at AXA XL. He can be
contacted at: email@example.com