Monte Carlo Reinsurance Rendez-Vous news

Aon’s Reinsurance Solutions team intends to push reinsurers and ILS funds for rate reductions, in areas of the market where real competition is seen, with the higher-layers of towers likely to receive the most focus for price improvements for clients at the January 2024 renewals.

For global insurance and reinsurance group Everest, the Mt. Logan Re Ltd. third-party capital vehicle is a key strategic priority for the long-term, one that the company intends to grow, COO and Head of Reinsurance Jim Williamson told us.

Alternative reinsurance capital, largely deployed in insurance-linked securities (ILS) formats, remained static at its $100 billion at the mid-point of 2023, according to insurance and reinsurance broker Aon.

Catastrophe bond issuance will reach new heights in 2023, with more than $15 billion of full-year issuance forecast by broker Aon, according to senior executive Mike Van Slooten.

The rebound in capital provided by the insurance-linked securities (ILS) market has become a key supply-side driver in the property catastrophe space, according to Joe Monaghan, Global Growth Leader Reinsurance Solutions at Aon.

In revising its outlook on the global reinsurance sector outlook to ‘improving’ from ‘neutral’ to reflect the sector’s strengthening financial performance into 2024, Fitch Ratings has also cautioned that with capital building again, not least in catastrophe bonds and ILS, a gradual softening of the market can be expected from 2025.

Christian Mumenthaler, the CEO of global reinsurance giant Swiss Re joined us for an interview recently and explained that he believes the hard market in reinsurance will be sustained, at least for a few years.

The growth of the 144a catastrophe bond market is expected to accelerate, as greater acceptance of the product filters through the primary insurer base and the cat bond has demonstrated its usefulness as a complement to reinsurance, David Priebe of Guy Carpenter explained today.

After incorporating data from the mid-year renewals, global property catastrophe reinsurance rates are now estimated to have risen by approaching 30% year-to-date, according to Guy Carpenter.

The global reinsurance market outlook is no longer negative, S&P Global Ratings said yesterday, as pricing power has now returned to reinsurers giving the rating agency the confidence to offer a stable view of the market’s prospects.