Catastrophe risk management software specialist RMS is expanding its business relationship with the China Reinsurance Group (China Re) to further the reinsurer’s efforts to cultivate its presence outside of China.
Through the agreement, RMS models will support China Re’s Syndicate 2088, the first Chinese direct investment into the London insurance market of Lloyd’s, enabling China Re to use robust in-house model coverage to write open market business in Europe for the first time.
RMS added that the setup of Syndicate 2088 improves China Re’s reinsurance portfolio mix and enhances its long-term competitiveness.
“China Re has used RMS modelling to support our international business development since 2012 and we are pleased to use RMS technology to improve our business, bringing our relationship with RMS from Beijing to London,” said Dr. Zuo Huiqiang, head of actuary and risk management for the China Reinsurance Group.
“China Re is committed to Lloyd’s, both in business locations and model convergence, as well as to our objective of building Syndicate 2088 and becoming a major player in the international reinsurance market.”
“We are delighted with China Re’s decision to use RMS as the sole risk model provider supporting their international business development as they move to London,” said Wen Chen, director, Asia Pacific, at RMS. “The agreement is a milestone not only for RMS’s expansion in China, but also for a more diversified and internationalised Lloyd’s.”
In accordance with Lloyd’s regulations, China Re hired Catlin Underwriting Agencies Ltd (CUAL) of Catlin Group as the managing agency for Syndicate 2088. Using RMS modelling, the syndicate will write a diversified portfolio, both by class of business and by geographic region, and a significant proportion will represent new business to the Lloyd’s market.
However, a London summit on the industry’s introduction of the technology cautions that testing and acceptance are still at an early stage and firms should proceed with caution.
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