london insurance market

Aon has announced a renewal and an expansion of its long-standing Client Treaty facility for the London and Lloyd’s market, which will now offer 28.5% of co-insurance capacity for qualifying placements.

Speaking to insurance-linked securities (ILS) funds and investors in 2022, the London insurance and reinsurance market is seen as a venue where deploying capital to access differentiated insurance or reinsurance-linked returns is increasingly attractive, but still ease of access is cited as a problem.

Rating agency A.M. Best says that it is concerned that relaxation of insurance and reinsurance contract terms and conditions in the London market could adversely affect results in coming years and that it is monitoring how companies deal with increased exposures.

Fitch Ratings has revised its fundamental outlook for the London non-life insurance and reinsurance market to negative, previously stable, due to the underlying expectation that a substantial proportion of the market faces further significant pricing pressure.

The London insurance and reinsurance market plans to take on at least 10% more U.S. windstorm risk in 2014, adding to abundant capacity from both traditional and non-traditional sources as we approach the January reinsurance renewals.