As part of wider efficiency measurers it has been reported that Willis Re Specialty will reduce its headcount by about 10 people. This particular action is believed to support a wider drive to free up some capital to invest in data and analytics.
Reinsurers have seen margins fall from the mid 30’s to the mid 20’s since 2012 as falling rates, due to increasing competition, took hold of the market. Simultaneously there has been increasing investment going into analytics as companies look to reinvent themselves as data-driven risk consultants, not transactional brokers.
More traditional, relationship driven markets, such as marine, aviation and terrorism have remained relatively secure but pressure is starting to show in these lines of business. Willis Re went through an earlier round of cost cutting in early 2015 as it looked to address these challenges.