Insights

Willis Re 1st View January 2020: Markets Diverge

Posted 14.01.2020 – Insights

Willis Re has released the January edition of its thrice-annual update of global reinsurance market conditions.

Key findings

  • Reinsurers have been judicious during the 1.1 renewal period, leading to significant pricing and capacity variance depending on geography, product line, loss record and individual client relationships.
  • US placements were more challenging than international renewals, with UK motor and some international liability accounts being the exceptions to the rule, while property catastrophe (cat) proved less demanding than non-cat business.
  • Renewal negotiations were particularly demanding on liability accounts showing prior-year loss development and on risk programs with increased loss frequency and/or severity.
  • Pro rata liability renewals were less volatile than excess of loss renewals, mainly as a result of primary pricing trends continuing to move upward in a growing number of classes and territories, with the increase in primary pricing accelerating in the second half of 2019.

Capacity for retrocessional covers has been in shorter supply after Insurance-Linked Securities (ILS) capacity growth stalled in the past 12 months and in some cases reduced, leading to significant rate increases and program restructuring particularly for aggregate placements.

Click here to access the full report.

Subscribe to receive our regular news, updates and insights straight to your inbox

Please wait...
All done!
Oops! Please try again.