At VIG Re, our principle is to constantly question the status quo

Today's world demands much more from reinsurance managers than in the past. Especially in an executive position, they must be visionaries who can anticipate macro trends, says Tobias Sonndorfer, Chairman of and CEO of VIG Re.

We are living through a decade full of dramatic changes, from geopolitical turbulence to visible climate change. This presents unprecedented challenges for the reinsurance industry, but also opportunities for growth. "The traditional reinsurance model is certainly evolving. To survive and thrive in today's market, I believe that reinsurers must be highly adaptable, agile, and forward-thinking. This means not only robust underwriting and capital management but also a greater emphasis on data analytics, predictive modelling, and understanding complex, interconnected risks like cyber and climate change," says Tobias Sonndorfer. His vision is to take advantage of current opportunities and accelerate VIG Re's growth into a global player. At the beginning of the year, after two years on VIG Re’s Board of Directors, he took over as the new CEO of the company. While he can draw on the experience he has gained over years of working for Munich Re, the world's largest reinsurer, a smaller company has the advantage of greater agility and dynamism. “We encourage our managers to be visionaries and strong leaders, willing to challenge existing paradigms and find new ways of doing business, rather than simply replicating old models,” explains Sonndorfer. In an interview conducted in collaboration with the Global Minds project, he also explains why it is useful to give people trust, space and responsibility, and how harmful micromanagement is.

At the beginning of the year, you became CEO of VIG Re. Where do you want to take this medium-sized reinsurance company? Are you planning to make any significant changes? 

Taking on the CEO role at VIG Re at the beginning of the year is an exciting challenge. Regarding your characterization of us as "medium-sized," I would actually emphasize that VIG Re is very much a reinsurer on a strong growth path, rapidly gaining recognition as a global player. My ambition is to accelerate this journey. We are not planning revolutionary, sudden changes, but rather a focused evolution to build on our already solid foundation. The goal is to solidify VIG Re's position as a highly successful, globally recognized reinsurer that stands out on the market. This involves continuing to be trustworthy and reliable, while also being courageous, bold, and proactive in challenging the current status quo, always seeking new ways of doing business and fostering win-win situations for our partners.

VIG Re is particularly strong in Central and Eastern Europe. Are you aiming for significant expansion outside this region?

Our strength in Central and Eastern Europe is clear and remains an important part of our business. However, to clarify, yes - VIG Re is a reinsurer of the Vienna Insurance Group which covers the CEE region, but we are not solely a regional player. We are actively pursuing a significant expansion outside this region. We are already seeing substantial growth, particularly in Germany, France or Japan, and we are strategically exploring other key regions globally. Our aim is to become a truly global reinsurer, diversifying our portfolio and strengthening our market presence. This global aspiration is evident in our growing brand recognition, as highlighted by the latest NMG Consulting Survey 2024, which identified VIG Re as the biggest mover over the last five years in terms of brand recognition on the reinsurance market, and uniquely, the only reinsurer to achieve lifts in each of the last two years. This underscores our successful journey from a strong regional player to a growing and recognized global reinsurer.

The reinsurance business is somewhat in the background, but it would be difficult for the insurance industry to function without it. How fierce is the competition in this sector?

The reinsurance is almost an invisible hand for the insurance industry, enabling stability, resilience, and innovation. The competition in this sector is of course fierce, characterized by both large, established players and agile newcomers. This intensifies the need for reinsurers to differentiate themselves. For VIG Re, this means not just competing on price or capacity, but on our ability to be a trustworthy, reliable, and respectable partner – a partner who truly has our clients' back, as our motto "We've got your back" suggests. We are also selective in our partnerships and deals, ensuring we collaborate with those who share our vision for sustainable growth and mutual benefit. This strategic selectivity, combined with our commitment to finding new and innovative solutions, allows us to thrive even in a highly competitive landscape.

How is your industry developing in this decade full of dramatic changes and turbulence? Is this an era of growth opportunities or rather a difficult period?

This decade is indeed marked by dramatic changes, from geopolitical turbulence and shifts to technological advancements and, crucially, visible climate change. For the reinsurance industry, it presents both significant challenges and substantial growth opportunities. While turbulence necessitates careful risk management and a deep understanding of evolving exposures, it also creates demand for innovative solutions and robust capital. For a reinsurer like VIG Re, it is an era where our commitment to being a courageous, bold, and solution-oriented partner becomes even more critical. By embracing new ways of doing business and proactively addressing emerging risks, we see immense potential for growth, particularly as more companies seek reliable partners to navigate this complex landscape.

Are you already seeing the effects of climate change in the reinsurance industry?

Absolutely. The effects of climate change are not a future prediction for the reinsurance industry; they are a present reality. We are already seeing increased frequency and severity of extreme weather events globally, leading to higher claims in certain lines of business. This directly impacts reinsurers’ risk models, pricing strategies, and capital allocation. As reinsurers, we play a crucial role in absorbing and mitigating these risks, but it also compels us to adapt our business models and work closely with our clients to promote resilience and risk reduction. It is a key factor driving our need to be flexible and innovative in our underwriting and solution provision.

Do reinsurers have to adapt their business model more than before in order to survive in the market?

The answer is more than ever before. The traditional reinsurance model is certainly evolving. To survive and thrive in today's market, I believe that reinsurers must be highly adaptable, agile, and forward-thinking. This means not only robust underwriting and capital management but also a greater emphasis on data analytics, predictive modelling, and understanding complex, interconnected risks like cyber and climate change. Furthermore, and this is where I see opportunities also for VIG Re, it requires a shift towards genuine partnership, offering not just capacity but also expertise and innovative solutions. As I mentioned, VIG Re is committed to challenging the current status quo and finding new ways how to do business – this proactive adaptation is essential for long-term success.

You worked for many years at Munich Re, the largest global reinsurer. How transferable is that experience to the significantly smaller VIG Re?

My years at Munich Re provided an invaluable foundation, exposing me to the highest standards of global reinsurance operations, risk management, and strategic thinking. While VIG Re is currently at a different scale, the fundamental principles of excellence, disciplined underwriting, client-centricity, and a global mindset are absolutely transferable. In fact, being in a rapidly growing company like VIG Re, which is more agile, allows us to implement these principles with speed and tailor them to our specific growth trajectory. The experience from a market leader helps in setting ambitious goals and understanding the path to becoming a recognized global player, which is precisely where we are heading.

What actually brought you to reinsurance?

My background is in banking and consulting, which is quite different on the surface. However, I reached a point where I felt a strong desire to make a more tangible difference, to see the direct results of my work, and to build a truly meaningful career. Reinsurance, with its critical role in the global economy and its intellectual challenges, deeply appealed to me. It wasn't just the industry; it was very much about the people around me who inspired me to make this change. The idea of contributing to a business that provides essential stability and enables progress – being a partner that has clients' backs – resonated deeply with my personal values.

Why have you remained loyal to this field for so long?

Because it consistently offers the intellectual stimulation and purposeful impact I need and keeps me on my toes. It's an industry that demands continuous learning and adaptation, which keeps it incredibly engaging. Every day presents new challenges – from climate risks to cyber threats – requiring innovative solutions. But beyond the technical aspects, it is about the relationships built on trust and reliability. I get a profound satisfaction in providing security and enabling businesses and societies to thrive, knowing that your work genuinely makes a difference. It is about building lasting partnerships and seeing tangible results, which for me, defines a truly meaningful career.

You have a wealth of experience. What does today's world require of a reinsurance company manager, and has this changed significantly since you entered the industry? 

The demands on a reinsurance company manager have indeed changed significantly. When I entered the industry, technical expertise in underwriting and risk modelling was paramount, and it still is. However, today's world requires far more. A manager, especially on an executive position must be a visionary, capable of anticipating macro trends and guiding the company through unprecedented turbulence. For instance, at VIG Re we encourage our managers to be those visionaries and strong leaders, willing to challenge existing paradigms and find new ways of doing business, rather than simply replicating old models. We empower our people, giving them space and responsibility, while expecting accountability and engagement. At VIG Re, it is about fostering a culture of innovation and collaboration, building strong relationships, and always looking for those win-win solutions in our complex and interconnected world.

What works for you when you need to get people on board with your vision? What should definitely be avoided?

Getting people on board with a vision boils down to clarity, authenticity, and empowerment. I believe in having a very clear vision and strategy – making VIG Re a highly successful company that stands out by being bold and challenging the status quo. I then communicate this vision transparently, explaining not just the 'what' but the 'why' and the 'how'. I try to be authentic and open when explaining to our people what is ahead of us and why. 

Based on my experience, what truly works, is empowering people, giving them the space and responsibility to contribute, and showing them how their individual efforts fit into the larger picture. I personally expect accountability and engagement because I trust our colleagues to deliver. What should definitely be avoided is micromanagement, a lack of transparency, and failing to acknowledge contributions. When people feel stifled or unheard, engagement wanes, frustration takes over, and the vision remains just an idea rather than a shared reality.

Where do you see VIG Re at the end of the decade?

Thank you for asking because this is super important to me: I envision VIG Re as an even more prominent and highly successful global reinsurer. We will be definitively recognized not just as a strong player in Central and Eastern Europe, but as a go-to partner in other key markets globally. We will be known for our reliability and trustworthiness, fulfilling our motto, "We've got your back," with every interaction. 

Critically, VIG Re will stand out on the market as a courageous and bold company, constantly pioneering innovative solutions that create win-win situations for our clients and partners. Our brand recognition will continue to solidify our position as a dynamic and essential force in the global reinsurance landscape. And I believe that people will know that VIG Re is a great place to pursue their career. 

Tobias Sonndorfer

A reinsurance professional with over 17 years of experience, became CEO and Chairman of VIG Re in January 2025, after serving as Vice-Chairman. Prior to VIG Re, he was a Client Management Executive at Munich Re, responsible for CEE, SEE, and Western European markets, holding various senior managerial positions there for 10 years. Earlier, he worked as a senior consultant at PWC in Germany. He is graduated from OTH Regensburg.

You can read the Czech version of the article HERE