terms & conditions

Analysts from Autonomous suggest that while reinsurance terms and conditions are set to face increasing pressure as 2026 progresses, any slippage seen in 2025 does not yet indicate that T&Cs are becoming irrational.

Investor interest in insurance-linked securities (ILS), particularly on the private ILS and reinsurance side of the market, can be enhanced with a continuation of the prudent approach to underwriting currently being seen, Marcel Grandi, Head of ILS Sourcing at Twelve Capital told us.

Investment banking giant Goldman Sachs believes that investors are not fully appreciating how the changes to terms and conditions in property reinsurance will affect the outcome for reinsurers and other insurance-linked investments, feeling that the changes can drive strong additional returns for constituents.

With the important January 1st, 2021 reinsurance renewals fast approaching, priorities for the insurance-linked securities (ILS) market for year-end are expected to include named perils and ensuring alignment amid a hardening environment, according to Michael Millette, Founder & Managing Partner, Hudson Structured Capital Management.

While reinsurance and retrocession are heading full-tilt into a hard market in terms of pricing, the increasing focus on precision of wordings and terms are set to result in 2021 portfolios that could deliver significantly higher risk-adjusted returns for some.

The Lloyd’s Market Association (LMA) has released data which shows that the majority of casualty treaty reinsurance underwriters at Lloyd’s have concerns about the extent to which terms and conditions have been relaxed recently.