Reinsurance renewals news

Andy Marcell, the CEO of Aon’s Reinsurance Solutions, has highlighted the slow and delayed start to the reinsurance renewals and implies the lack of quoting activity has become an issue, calling on reinsurance markets to “move towards” risk at this renewal, not away from it.

Reinsurance renewal negotiations continue, but we’re told some placement proposals delivered for market feedback are receiving short-shrift, with carriers’ pushing back and asking for more rate.

The apparent impairment of global dedicated reinsurance capital is set to create “generational” opportunities for underwriting companies, according to David Flandro and Michelle To of Howden Broking.

Analysts at Peel Hunt are forecasting that property catastrophe reinsurance rates may increase 20% to 30% above inflation in 2023, based on conversations they’ve had with underwriters and brokers.

Hurricane Ian has potentially created one of the most disrupted reinsurance markets of the last decade, but those best-placed with stable capacity stand to benefit most, according to an investor note by the Amundi US ILS portfolio management team seen by Artemis.

As the renewal season negotiations get underway, quota share focused ILS investment manager Tangency Capital feels well-positioned and believes the capital it provides is core to reinsurers, so more important than ever in current market conditions.

Right now, with only weeks left until the renewals and New Year begins, analysts at J.P. Morgan say they don’t believe there is any reinsurance “Class of 2023” forming on the horizon.

Beazley CEO Adrian Cox forecasts a “structural change” in the reinsurance market at the January 2023 renewals, especially in property risks, an area his company is ready to capitalise on by writing more business.

Giving a signal as to how the very large carriers of the world may choose to navigate a harder reinsurance renewal environment, George Quinn, the CFO of Zurich, explained that the company could elect to not renew its catastrophe aggregate treaty if the price was too high.

RenaissanceRe, the Bermuda-based reinsurance firm and third-party capital management specialist, has seen a decline in its external capital under management, across joint-venture and ILS fund structures during the third-quarter, as the total fell by 5.5% to roughly $6.32 billion due to losses from hurricane Ian.