When a brief but powerful cyclone hit Western Europe in early winter a couple of years ago, destroying property, causing power outages, and shutting down transportation, the reinsurance industry estimated the losses caused by the storm at a couple of billion euros.

In September of that year, Oliver Kaufmann, a young underwriter in NewRe’s Property department, heard through a broker that a major European insurer was looking to buy additional reinsurance after being wrong-footed by the storm.

It was an ideal opportunity. The insurer was already a client of NewRe and potentially represented access to other lines of business – specifically, casualty reinsurance – that NewRe was eager to have a share of. Up to that point, the relationship had consisted of a fairly small property catastrophe cover.

Over the next three months, Oliver and Julie Gigleux – a colleague from the Casualty department – worked with the client on solutions to a variety of problems. Not all of those solutions panned out. But in the process, the trust the team built with the client ultimately paid off in a big way. To see how that happened, let’s first take a step back.

Laying the groundwork

Building trust comes naturally at NewRe. The small size and lean structure of the organisation, and the way job functions are conceived, all contribute to the fast reaction times required to innovate. For example, Oliver and Julie are both underwriters who have the expertise and the decision-making power to stay close to the client and to provide the customised service clients are looking for.

Julie: Although Oliver and I are in separate departments, so to speak, we are basically located next to each other. We can interact any time we want. We don’t have to set up lengthy meetings. Which means we can act fast.

Recently, the client had undergone a restructuring. Oliver, who was working on property renewals, offered additional catastrophe capacity to support the company through the process and to reposition NewRe accordingly. Julie wasn’t involved at that point, but she was aware of the developments.

Oliver: We were very interested in working with the client after the changes. Julie and I talked about how it was the perfect moment to enter a new business because the client was redoing everything.

At the end of the December before the cyclone, typically the busiest time of the year, Oliver asked to see the client’s casualty data (regarding losses and exposures, for example). In response, the client sent Julie their casualty programme’s extensive motor and liability portfolio, and gave her only 24 hours to decide whether to take it at their price. Julie worked past closing that night and was back in the office early the next morning. But the size of the portfolio made it impossible to match the client’s terms in a day, and she had to say no. Disappointed, she thought she’d lost the opportunity forever.

Julie: Oliver offering more capacity and, through that, our getting to see the casualty data was the first real step in connecting our participations in casualty and property. Of course, I didn’t think they would send me the data and give me just one day! I really wanted to make it work.

Julie let the client know she would continue to work on the data over the next year. In the meanwhile, Oliver successfully concluded the property transactions. Then came the cyclone. In the spring of the following year, Oliver set off on the visits that NewRe makes to clients each year. Everyone was talking about the storm. During these months, Julie was in Stockholm finishing her studies, but the two stayed in contact. When she returned in the summer, she took a much closer look at the casualty data and liked what she saw.

Adding value for clients

It was around this time that Oliver heard that the client was looking to buy additional property cover. Their current programme hadn’t paid out during the storm. Oliver brainstormed with colleagues at NewRe about a structured solution for the client to meet his budget. Then, at the annual meeting in Baden-Baden, Germany – the key event in the reinsurance calendar – Oliver and Julie met with the broker and the client to discuss the structure.

Julie: When we met the client in Baden-Baden, they were super-happy about Oliver’s efforts. Because they were always looking for new ideas and for people who were not just trying to sell them traditional reinsurance, but rather were creating something new that was more tailored to their needs.

Back in Zurich, Oliver spent several weeks working up offers, consulting with the actuaries at NewRe and calling the broker repeatedly to propose different structures. So it was doubly disappointing when a competitor offered a standard cover that NewRe could not match due to highly competitive pricing. But Oliver had shown that he could rapidly produce innovative solutions. And now events were about to take a very positive turn.

Eyes on the prize

During the talks with the client in Baden-Baden on the property cover, Julie had also introduced the idea of a casualty cover based on number of motor losses. The client didn’t appear to give the idea too much attention. But Julie and the broker continued to discuss the possibility. And in December, while the client was visiting NewRe in Zurich, Julie broached the subject again.

Julie: They said they loved the idea of the motor loss frequency cover and would like to know more about it. But their board was too busy to buy into such a new concept before the renewal deadline.

Emboldened by the response, Julie asked the client for their latest casualty data, and told them that NewRe would like to have a significant share on their “normal” casualty programme. A week or so later, data in hand, Julie made the client a formal offer. Three days after Christmas, the client e-mailed Julie with the news that they were renewing their property relationship with NewRe – and also according the reinsurer the requested line in the casualty programme. The team was ecstatic.

Oliver: It’s a fiercely competitive market. And they gave us a relatively high part of the portfolio. I think they saw that we’re quite willing to bring something more to them.

At NewRe, success is all about helping clients achieve what they want. Over the short space of a year, Oliver and Julie showed again and again that they were committed to the client and would go the extra mile to find solutions even when ideas sometimes didn’t work out. It was obvious all along that the client appreciated the team’s efforts. Just how much became clear with the signing of the property and casualty contracts. It doesn’t get better than that.

Julie: In the end, capacity is capacity. Anyone can offer that. You have to know the client, and they have to know you. Without that, you can’t do much. Because it’s still a people business.

Emboldened by the response, Julie asked the client for their latest casualty data, and told them that NewRe would like to have a significant share on their “normal” casualty programme. A week or so later, data in hand, Julie made the client a formal offer. Three days after Christmas, the client e-mailed Julie with the news that they were renewing their property relationship with NewRe – and also according the reinsurer the requested line in the casualty programme. The team was ecstatic.

Oliver: It’s a fiercely competitive market. And they gave us a relatively high part of the portfolio. I think they saw that we’re quite willing to bring something more to them.

At NewRe, success is all about helping clients achieve what they want. Over the short space of a year, Oliver and Julie showed again and again that they were committed to the client and would go the extra mile to find solutions even when ideas sometimes didn’t work out. It was obvious all along that the client appreciated the team’s efforts. Just how much became clear with the signing of the property and casualty contracts. It doesn’t get better than that.

Julie: In the end, capacity is capacity. Anyone can offer that. You have to know the client, and they have to know you. Without that, you can’t do much. Because it’s still a people business.