Gallagher Re’s Wakefield and Flasinski: “Our focus is on being the most client centric”

Gallagher Re’s transformation into one of the largest global reinsurance brokers since its acquisition of Willis Re nearly three years ago has been anchored in its focus on client needs, according to CEO Tom Wakefield.

Speaking ahead of the Monte Carlo Reinsurance Rendez-Vous in a joint interview with North America head Brian Flasinski on The Insurer TV, Wakefield underscored that the company’s priority is not size, but delivering tailored solutions that meet clients' strategic goals.

“Our focus is not on being the largest; it’s on being the most client-centric,” Wakefield said. “We spend our time really understanding clients' views on risk, using data to articulate their exposures and support their strategic objectives through the reinsurance transaction.”

Gallagher Re has heavily invested in data analytics and infrastructure to provide bespoke solutions to specific market challenges. This focus has been key to the firm’s success and will remain a priority as it navigates the evolving reinsurance landscape.

“Our data-driven approach helps clients manage market cycles and make informed decisions. This differentiates us in a competitive market,” Wakefield added.

Client-centric strategy in North America

Brian Flasinski, CEO of Gallagher Re North America, echoed this client-first ethos, emphasising the company's strategy of bringing the full power of Gallagher’s capabilities to clients, particularly in the middle market.

"We’ve been focusing on strategic advisory for large and complex carriers, while leveraging our data and collaboration with retail colleagues to deliver better outcomes and reduce volatility for our clients," Flasinski said.

Flasinski took over as North America CEO in mid-2024, following a smooth transition from his predecessor Jim Bradshaw, who had led the division for over a decade.

He noted that the focus on core clients and growth in the middle-market segment has been critical to Gallagher Re’s North America strategy.

"We’re refining our approach to meet the needs of the middle market, which is less volatile but still requires tailored solutions to ensure better risk management," he added.

Nat cat losses and innovative solutions

Flasinski highlighted the significant impact of natural catastrophe losses on the reinsurance market, particularly in the US, where severe convective storms (SCS) have contributed to substantial losses.

"2023 was the fourth consecutive year of $100bn in losses, and by the first half of 2024, losses had already exceeded $60 billion, with over 60 percent coming from US severe convective storms," he said.

These persistent losses, combined with increased retentions, have left insurers retaining more risk, putting pressure on their balance sheets. However, innovative solutions are helping to mitigate some of the challenges.

"We’re product-agnostic when it comes to reinsurance, and innovations like parametric insurance and non-indemnity footprint models have been critical in bringing additional capacity into the market and solving client problems," Flasinski said.

Gallagher Re has also been successful in negotiating ‘buy-downs’ on retentions for certain clients, especially those with specific risk profiles, providing much-needed relief in a challenging market.

Capacity and competition

Despite the pressure from frequent nat cat events, Wakefield emphasised that supply and demand in the reinsurance market remain balanced, with capital increasing year-on-year by 5.4 percent.

He also noted that while inflation is driving up demand for catastrophe coverage, there is still ample capacity available, particularly at the top end of reinsurance programs.

“There’s an increased demand for coverage due to inflation, but there’s enough capacity at the top end, both from traditional reinsurers and the insurance-linked securities market, which remains stable heading into 2025,” Wakefield said.

He added that while competition remains strong, especially in the North American and European markets, Gallagher Re’s focus on data and tailored solutions positions it well to navigate the competitive landscape.

"We’re delving deep into data to uncover trends and opportunities that can help clients manage their capital and mitigate earnings volatility,” Wakefield explained.

Record cat bond issuance and cyber solutions

The reinsurance market has seen a surge in cat bond issuance, and 2024 is shaping up to be a record year for the market. Wakefield highlighted the importance of these alternative capital solutions in offsetting risk.

"Cat bond issuances are at an all-time high. While we don’t expect the same pace of growth in 2025, we see them as a vital tool in helping clients manage their exposures," he said.

Cyber risk has also risen to the forefront of discussions among insurers and reinsurers, with recent high-profile cyber incidents underscoring the importance of innovative risk management strategies. Gallagher Re has been a leader in this space, issuing the first 144A cyber cat bond and developing other occurrence-based products to address the growing demand for cyber risk coverage.

"We’ve spent the last few years developing products to bring capital into the cyber market, and we’re proud of our leadership in this area," Wakefield said. He also emphasised that Gallagher Re’s consultancy services help clients assess their cyber exposures more effectively, providing them with a comprehensive approach to risk management.

Watch the 13-minute interview with Gallagher Re’s to hear more about: