Challenges and Motivations in the Reinsurance Market

The reinsurance market has faced significant changes with the influx of alternative capital, making it difficult to predict big opportunities post-catastrophic events. The increased capital is attracted to reinsurance as a fashionable asset class for non-correlated investments or as a front for operating hedge funds while evading taxes, rather than for the fundamental purpose of reinsurance. This shift has made the business environment less favorable than before.