Uncertain times are challenging for reinsurers. Claims may jump, and investment losses may dent profitability and possibly capital. However, uncertain times can also be good for reinsurers. Demand for reinsurance protection is high, competitive pressures are easing, and pricing power is strong.

This year has been full of challenges. Climate change-related natural catastrophes have increased in frequency, and general inflation has reached levels not seen for decades. Interest rates have risen substantially, and Europe has witnessed the eruption of a new war. The COVID-19 pandemic may re-erupt this winter. How will the global reinsurance industry perform in such an environment?