Phil Hough on Redefining Collaboration through Partnerships

In a reinsurance market characterized by heightened volatility and an ever-changing risk landscape, the importance of partnerships between reinsurer and cedant has never been clearer. Insurers expect more, and reinsurers must deliver. 

That is the view of Aspen’s Philip Hough, Global Head of Property Reinsurance & Head of EMEA/LATAM. He told Baden-Baden Today that he believes the complex risk landscape has forced change in the dynamic. “The relationship between client and reinsurer has evolved: it’s about much more than just pricing or placing capacity—it’s about genuine partnership,” Hough explained.

For Hough, relationships with clients are not simply transactional—they are built on a shared understanding of the complex risks that need to be addressed.

“We’re in a stronger position today,” he said, reflecting on Aspen Re’s transformation in recent years.

“We’ve come a long way in terms of the transformation within Aspen. We’re well shaped, and we have good relationships with our key partners.”

These relationships, he noted, are growing broader and deeper, allowing Aspen Re and its clients to meet the challenges of a volatile market head-on.

Hough pointed to the central role of trust in these partnerships. “We see a lot of clients now engaging in long-term partnerships where trust is a key element.

“Clients are more open than ever to working closely with us, not just on pricing, but on developing solutions tailored to their evolving needs,” he said.

“We are aligning ourselves with our clients in a way that goes beyond traditional transactions, focusing on collaboration, trust, and providing innovative solutions that meet the unique challenges of today’s risk environment,”

Value beyond capacity

This collaborative approach, Hough explained, is what allows Aspen Re to deliver value beyond simply placing capacity.

“Clients expect more from their reinsurers now: they want a partner who understands the broader business challenges they face,” he noted, emphasizing that partnerships were becoming more sophisticated.

“Those relationships are becoming broader, which fulfils the expectations of the clients as well,” Hough said, explaining how the focus was not only on mitigating risk but also on creating opportunities for mutual growth.

As part of this shift toward deeper collaboration, Hough sees a growing demand for innovation in the products and services reinsurers provide.

“We’re very open to discussing new solutions, new products and new ideas, but they have to be well understood, and they need to be sustainable,” he stressed.

This emphasis on sustainability is a recurring theme for Hough.

In an environment where reinsurers and their clients are grappling with increasing loss burdens and emerging risks, innovation must be tempered with practicality.

“There’s no point in developing a product that won’t hold up in the long run or that doesn’t address the root of the problem,” Hough added.

A significant driver of the need for innovation is the changing nature of risk itself.

“At the beginning, it was feeling perhaps like a quieter year for catastrophe losses, but the recent events will definitely put catastrophe risk back on the table for discussion when it comes to renewal,” he said.

Hough emphasized that this highlighted the need for reinsurers to remain flexible and responsive to changing conditions.

“We’re acutely aware, and more aware than ever, of the trends that we’re facing in the marketplace,” he said.

With an increasing focus on catastrophe risk, Hough believes that Aspen Re’s strong position and relationships with key partners will allow it to navigate these challenges.

He noted the alignment between what the reinsurance industry can provide and what clients need. “There is good alignment between what we as a reinsurance industry are able to provide and what our clients need and what they are expecting,” he explained.

However, these discussions were sometimes tough, Hough acknowledged.

“Clients are facing a lot of the same issues that we’ve been dealing with, partly because there has been a shift of the loss burden back towards cedants in recent years,” he observed.

Looking ahead, Hough remains optimistic about the future of the reinsurance industry, particularly in light of the strengthening partnerships between reinsurers and their clients.

“The message from Aspen is that we’re open to new solutions, but they have to be sustainable. We’re looking forward to continuing these productive discussions with our clients,” he said.

“We’ve come a long way, and we’re excited about the future,” Hough concluded.

“Our relationships with clients are stronger than ever, and we’re ready to help them navigate the challenges that lie ahead.”

Read the original article on Intelligent Insurer.