Alternative capital has become a key tool for resiliency: Rapin, CEO, Nephila Climate

At the latest Baden-Baden Reinsurance Symposium hosted by Guy Carpenter, the reinsurance broking arm of Marsh McLennan, Maria Rapin, Chief Executive Officer (CEO) of Nephila Climate, has highlighted the increasing role of alternative capital in the 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 said. “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.”

Laurent Rousseau, CEO, EMEA and Global Capital Solutions, Guy Carpenter also echoed the theme and sentiment of the Symposium, “Partnering through crises, shocks and cycles”,  stating that every re/insurance ecosystem stakeholder should have a clearly defined role to maintain the industry’s resilience to the growing systemic risk potential.

Rousseau emphasised: “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.”

Roland Oppermann, Member of the Board, SV SparkassenVersicherung, added: “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, Swiss Re, addressed the industry’s critical role in facilitating recovery and urged for an alignment of the multiple strengths of the industry. He said: “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.”

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