Mario Greco, CEO of Zurich Insurance, has expressed concerns about the growing influence of private capital firms such as Apollo and KKR in the European insurance market. He argues that the asset-gathering strategies employed by these companies could face pushback from traditional insurers.
Greco highlights that firms like Apollo and KKR are increasingly interested in the insurance sector, primarily as a means to boost their asset management portfolios. This trend emphasizes a shift towards capital accumulation, which he believes might not align well with the fundamental principles of insurance.
During a recent interview, Greco noted that the philosophies driving these private capital groups could lead to a mismatch with the needs of policyholders and regulatory frameworks. He emphasized that insurance is fundamentally about risk management rather than merely gathering assets.
The entry of these financial giants might disrupt traditional business models within the insurance industry. Insurers focusing on risk management may find it challenging to compete with the aggressive asset growth strategies of private capital firms. Greco's comments suggest an ongoing debate about the role of capital in insurance and how it should be managed.
As the insurance landscape evolves, the tension between traditional insurers and private capital firms may shape future market dynamics. Greco’s remarks serve as a reminder of the need for the industry to prioritize its core mission while navigating these new challenges.
Original Source: https://www.ft.com/content/dd79b8aa-bf99-4721-8b8f-a2d3d12374f0