Alternative capital a material and critical reinsurance partner through crises: Rapin, Nephila

In comments made around Guy Carpenter’s Baden-Baden Reinsurance Symposium event, Maria Rapin, the CEO of Nephila Climate, the climate and weather focused arm of insurance-linked securities (ILS) specialist Nephila Capital, highlighted that alternative capital is a long-term partner for reinsurance that has been well-tested through catastrophes and crises.

This year’s theme of the reinsurance broker’s symposium at the Baden Baden event this year was, “Partnering through crises, shocks and cycles,” and speakers provided their thoughts on the broad topic.

Laurent Rousseau, CEO, EMEA and Global Capital Solutions, Guy Carpenter said that stakeholders in the insurance and reinsurance ecosystem need clearly defined roles in order for the industry to remain resilient in response to the growing systemic risk potential.

Maria Rapin, CEO of Nephila Climate, pointed to the growing role of ILS and alternative capital in the reinsurance market’s ability to absorb the financial impacts of expanding crises.

“The reinsurance industry has demonstrated its resilience time and again throughout crises, shocks and cycles,” Rapin explained. “Nearly 25 years ago, alternative capital was introduced as a capacity provider for the industry to manage through such periods of volatility.

“Its role as a diversified source of capacity has been tested throughout numerous catastrophe events, the pandemic, and the introduction of new lines of business like cyber or net-zero risks.

“Alternative capital has solidified its position as a material capacity source and critical tool for resiliency.”

Rousseau of Guy Carpenter further stated, “Crises, shocks and cycles are an integral part of the reinsurance industry. Insurers and reinsurers have always found balance through establishing synergetic relationships. While these relationships have evolved over time, innovation and the market’s drive for efficiency have ensured a strong and resilient industry.

“As the systemic nature of risks such as cyber and climate change becomes more evident, however, we must clearly distinguish the role of each stakeholder—insureds, (re)insurers, capital markets and governments—to maintain balance.”

Another speaker at the event in Baden Baden, Roland Oppermann, Member of the Board, SV SparkassenVersicherung, said, “Taking into account the significant and diverse challenges of the future related to climate change, cyber risks, and geopolitical tensions trustworthy partnerships between primary insurers, reinsurers, and retrocessionaires are becoming increasingly important. However, true partnership requires developing a strategy that enables all parties to plan for the long term. I firmly believe there is a need for an innovative and collaborative approach to ensure this across the entire risk transfer supply chain.”

Andreas Berger, Group CEO of reinsurer Swiss Re, called on the industry to work together to respond to crises, “Partnership through crises is not just about enduring the storm but about shaping the recovery together. In a world of rising uncertainties—from climate shocks to economic and geopolitical upheavals—true resilience comes from uniting expertise, sharing risks, and building trust. We face cycles of volatility, but by aligning our strengths, we can protect communities, provide financial support to rebuild and recover faster, and make the world more resilient. Together, we partner for progress.”