Klaus Bultmann, Associate and Chairman of the Board

  
       
     
 
              In recent years, major developments have occured in the insurance and reinsurance world. Fundamental changes are taking places gradually. Walls that historically seperated insurance companies from financial houses from intermediaries and consultants are being dismantled, and major players have executed strategic repositioning plans in order to alleviate their exposure to risk, to become more efficient and to be perceived to satisfy the needs of their customers.

 Smaller companies are struggling due to limited expertise, financial strength, lack of negotiating muscle and market access. Larger companies must expand at ever-faster rates in order to keep pace with ever-increasing costs and in order to satisfy the rapidly-growing ranks of financial commentors, analysts and credit rating watchdogs. Companies are viewing distribution and supply chains, and also customers, as potential business partners. Mergers and acquisitions are occuring even outside traditional operating arenas.

However, it is not that easy and proper long term solutions are not straightforward. Many outcomes are mismatched and poorly resourced. As organisations get bigger, so problems multiply. The changes of failure are high and costs are reaching astronomical heights. Specialisation is difficult and expensive for all and the provision of a vast and extensive range of services and expertise accross the board is not practical. Independent technical advice is not easily available.

Insurance companies need to gain access to bigger markets and to extend products and services whilst limiting their exposure to risks. But today, effective business solutions are more complex, more creative, more global. This is often beyond the scope of in-house resources and existing relationships.