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EY says reinsurance leaders will need speed as capital changes

EY warns that softening rates, abundant capacity, and new non-modeled risks are undermining traditional risk transfer tools as reinsurers move into an “end of predictability.”

Reported · Written up by our desk · Reinsurance

Reinsurance News, citing an EY report, said the reinsurance sector is entering what EY calls the “end of predictability,” driven by a market that now has abundant capital and faster-changing risk needs from cedants.

The outlet said EY expects future leaders to rely less on traditional underwriting judgment and disciplined cycle management, and more on strategic adaptability and faster decision-making as risks evolve quicker and AI reshapes how insurers operate.

Reinsurance News also highlighted EY’s view that softening rates, abundant capacity, and emerging non-modeled risks are weakening long-standing competitive risk transfer tools.

EY attributed the shift largely to changes in capital, noting that inflows of alternative capital, including private equity, sovereign wealth funds, and alternative asset managers, have moved into the mainstream.

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