Leading to more stable conditions, increased demand, better pricing and more capacity – according to the latest 1 st View renewal report by global reinsurance broker Gallagher Re.
At the April 1 st ' renewal, the property catastrophe segment saw a continuation of reinsurance markets taking on more risk in search of the growth seen at the January 1 st renewal. This resulted in increased available capacity and incremental improvement in risk adjusted pricing at firm order terms primarily at the top end of property programs.
Taking advantage of reinsurers’ desire to increase their property catastrophe portfolios many buyers used multiclass placement strategies to support more challenging property per risk and casualty treaties, the report found.
The US casualty and financial lines markets continue to face challenges, with increased prior-year adverse development reported for FY23 in the casualty sector and ongoing reductions in insurance pricing, particularly for public D&O coverage. This led to US casualty reinsurers offering varying shares in the same classes of coverage depending on the client.
In a wider sense, property and specialty buyers who had access to increased capacity were able to secure improved terms and support in non-catastrophe areas.
Gallaher Re CEO, Tom Wakefield, commented:
“Broadly, the market has more capacity available, which is really encouraging. Industry capital has gone up by about 12% thanks to better combined ratios, fewer losses from natural disasters, and improved investment income. This means there's more room to accommodate clients' needs and should lead to better terms and conditions as a result. However, recent events in Baltimore remind us of the ever-changing dynamic market we are operating in.”
The full report can be downloaded here.
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