Read Full Magazine Here. In the light of the latest Nat Cat, insurance and reinsurance experts meet during the annual Rendez-Vous de Septembre 2023 in Monte Carlo to discuss some issues for the improvement in the market.

Under climate change, natural disaster events tend to be more unpredictable, frequent, and devastating for critical energy infrastructure.
Companies are strongly influenced by their exposure to natural catastrophe risk, recovering from a major disaster may not prioritize disaster risk reduction.
It is expected that underwriting margins to improve this year, adding resiliency to the sector.
With over 50 years of industry experience, Nasco France is the leading reinsurance broker in the MENA region and one of the top three reinsurance brokers in France.
Christina Chalita, Senior Vice President Facultative and Regions at Nasco Rehas been in the reinsurance industry since 1993 and enjoys extensive experience in the reinsurance facultative placement mainly in multiline structured deal.
Speaking to BUSINESS LIFE reporter on the sidelines of the annual Rendez-Vous in Monte Carlo, Christina Chalita, Senior Vice President Facultative and Regions at Nasco Re, said Nasco Re is maximizing its operations in the Kingdom of Saudi Arabia and opening its office in Kenya.
 
BL: What do you think about the attendance?
Christina Chalita: We felt this year that the attendance is less than it used to be especially compared to last year. It seems that last year was a record year. Probably, due the fact that many events are taking place in various countries in the same period and some people have canceled, some of them have decided to resume or to send one or two participants but definitely the attendance is less than last year. Even, some big organizations used to do bigger events. Probably, it is a new trend to send the required representative to do the essential actions.
 
BL: What are the topics that have been discussed at this year’s meeting?
Christina Chalita: Most of the topics are related to Nat Cat risks, the de-risking of the reinsurers, the flattening rate and the tendency for treaty renewal. A recent S&P Global Ratings report has found that only half of the top 21 global reinsurers have increased their exposure to natural catastrophe risks, while the remainder are taking a more cautious and defensive stance by reducing their exposure.
The main rate increases were achieved on non-proportional treaties (+23%), in line with the trends observed during the January 1, 2023 renewals.
The biggest topics remain in discussion especially after the disastrous event in Morocco is a Cat exposure and not only Nat Cat; not only the earthquake but what is worrying  the reinsurers is the flood exposure because it is not modeled; it’s  not predicted; it’s not rated sufficiently enough to cater for the disaster that is happening after the earthquake and due to climate change where we are seeing many areas flooded, we have seen it in Greece recently, sweeping away roads, smashing bridges and flooding thousands of homes. Unfortunately, we have seen it recently in Derna, Libya and this is definitely affecting enormously the reinsurers. 
The increasing frequency and severity of natural catastrophes due to climate change is expected to cause higher natural disaster losses in the future. As more water vapor is evaporated into the atmosphere it becomes fuel for more powerful storms to develop. Reinsurance companies bear a large share of this risk in the form of excess-of-loss coverage, where they underwrite the most extreme portion of insurers’ risk portfolios.
There will be some changes about ratings related to these exposures because the earthquake exposure is rated in the treaties but not floods. So, we expect that the reinsurers will do more focusing on this particular event and impose restrictions, less capacity and adequate rating.
 
BL: Do you think this is actually a climate change? Is this the feeling that everybody is getting?
Christina Chalita: Yes, definitely, it’s the result of climate change.
We have seen it all over and I think this 2023 Summer was an obvious example of how the climate is changing and affecting insurers and reinsurers and affecting the lives of people.
 
BL: Do you think it’s not usual and it doesn’t fit in the regular modeling?
Christina Chalita: Not yet. They are not modeled enough especially in our area. We are talking specifically about our area.
If you want to talk about United States or Latin America; they are modeled enough. They have adequate information and they can expect what are their exposures but not in our area. This is a big wake-up call for all partners to really asses and do the right modeling to get the right exposure and to be able to indemnify the people and the companies up to their damages.
 
BL: How is the region doing in terms of economy because we heard that the oil prices are increasing? It seems that it’s a steady flow of income to all oil producing countries, do you agree?
Christina Chalita: Yes, exactly, the region is still protected by the oil flow, which is good for everyone especially Saudi Arabia and we are all focusing on Saudi Arabia. Currently, all our targets in the region are going towards the Kingdom. We are proud to say Nasco, France has acquired one hundred percent of Nasco Re – Saudi Arabia. We are the first brokers that has been able to do that and that was finalized one month ago and this demonstrates also that Saudi Arabia is really welcoming all investors and leading the way for a big change in the business models. Now, we are going to focus a lot on our operations there. We are going to hire more people to grow more in Saudi Arabia. With our new offices in Riyadh after Jeddah and others to follow, we do plan to focus more on this promising territory with frequent visits and workshops.
 
BL: You are a French reinsurer, has the Kingdom of Saudi Arabia changed?
Christina Chalita: It has changed a lot. Honestly, I salute and praise the Kingdom’s leader and I really congratulate all Saudis because they have embraced these changes which is a real achievement.
The country has significantly developed; accepted the cultural openness and recognized the power of women in the workplace.
 
BL: The power of women in the workplace as a business woman, isn’t it?
Christina Chalita: Yes, exactly. The Women have their own place now in the business cycle and visiting Saudi became very easy and indeed very attractive; this is to the Great Merit of Saudi Arabia’s Crown Prince Mohammed bin Salman who is so committed and executing his ideas in a very fast way.
 
BL: Is it a good change of mindset?
Christina Chalita: That is definitely a big change. Honestly, I was surprised and I think that the changes are going to happen even faster and I would say there will be a bigger competition between Saudi Arabia and Dubai in terms of attracting investors, talents and tourism but it’s all benefiting the area and the population. Thus, it is altogether positive energy to all.
 
BL: What is your opinion?
Christina Chalita: If they continue at the same pace, I would reckon the Kingdom of Saudi Arabia in five years’ time will be in a more advanced era because the will is stronger; the dynamics are bigger and there are opportunities one million percent. However, I would admit that the UAE is on a constant growth path and the unique and very audacious strategy they put in place for many years is on the track. Let’s wait and see, but indeed, it’s putting the GCC in the world’s map as the place to be and we are all proud of that.
BL: What do you think of Neom City?
Christina Chalita: Yes, Neom city is really a very audacious project and I think that it is going to change Saudi Arabia. It’s all green; it’s all biodiversity; it’s all ESG because now ESG is very trendy; it’s all very well thought of and organized. Neom City is a new urban area planned by the Kingdom of Saudi Arabia to be built in its northwestern Tabuk Province. There are trillions of dollars and it’s going to generate another big flow of income and big publicity to the region which we will all benefit from.
 
BL: Is there capacity to insure all the project?
Christina Chalita: There is capacity and there will be high capacity. We are seeing some big insurers and reinsurers coming from abroad; from the United States of America or Asia attracted by all these Mega Projects. Many reinsurers planned to buy higher retro capacity to reserve them to Neom City.
Surely, there will be some shortage in the capacity but the projects are mushroomed. Consequently, they can insure it locally. SAMA also has imposed regulations that are going to put the companies in better positions and they can have part of these mega projects. It’s a very exciting moment, we are living in this area with these projects and great opportunities.
 
BL: It seems that it is a big investment, how is Nasco Re going to cope with such mega Saudi projects?
Christina Chalita: Nasco Re has been in Saudi Arabia since 1970. We were amongst the few first reinsurers- brokers. One of the first few reinsures to go there. We had a big organization including a Shareholding in SGI who is now GCCI. So, our footprint in Saudi Arabia goes really in the seventies or even before. Being in France, we used to channel all the big French contractors like Vinci, Nexans and others as they were involved heavily in building the Saudi Arabia infrastructure.  So, our French presence was essential and we grew from there to service all the GCC /MENA markets; this was also simultaneous to establishing our offices in UAE in 1974 where we grew exponentially to reach over 250 people only in this territory committed on a daily basis to the excellence in servicing our clients.
The Group now is present in over 12 countries and have over 1200 employees
 
BL: How is the market? Is there a need for consolidation? Is it fragmented?
Christina Chalita: I think there will be some few consolidations in the GCC. More companies will absorb others; we have seen recently Sukoon with ASCANA and now ADNIC with Allianz and prior to that with GIG. Also, there will be some consolidations but not to a bigger extent.  The Non-Organic growth will be the main strategies of many companies.
 
BL: What are the latest updates of Nasco Re?
Christina Chalita: In Nasco Re, the latest updates are that we have acquired our shareholding of Saudi Arabia. We have opened an office also in Kenya. We did the launching in February 2023. So, I was there with our Chief Executive Officer Joe Azar and our Kenyan shareholders. Also, we opened in Oman and now we are acquiring two brokers one in Kuwait and one in Bahrain.
We like to do things at our path when we see the opportunity and see the right person to build on him the values of Nasco. As you know, It’s a business of trust; of people, continuity and transparency. This has been proven for the past fifty years that we are in this business. 
 
BL: Are you moving to Saudi Arabia?
Christina Chalita: I’m not moving yet for the moment, but I will be more involved in our Saudi Arabia’s offices in setting the strategies and growing much at the same base in other territories as I do also have a regional role to grow the flag of Nasco all over.
 
BL: Would you like to add any information?
Christina Chalita: Our industry is a business of Passionate People who have the commitment and ethics.  We should all lead by example for the next generation to have the same attitude and drive and maintain the professionalism and the spirit of partnership in our business.