Casualty General Third Party Liability (GTPL) in Japan at the April 1st, 2025, reinsurance renewals remained a challenging class of business, with excess-of-loss programmes with no loss emergence experiencing flat rates to up 5%, according to reinsurance broker Gallagher Re.
In a recent report, Gallagher Re noted that cedents’ significant efforts to reduce U.S. exposures, coupled with some individual claim improvements, supported modest price reductions. Reinsurers had varying views on pricing adequacy, depending on how exposure reductions and loss history were credited.
The reinsurance broker stated, “While reinsurer caution persists over remaining US exposures, reinsurers generally showed increased willingness to support with additional ‘strategic’ capacity deployed to access other lines of business.”
This led to programmes being comfortably placed, with incumbent reinsurers largely maintaining their capacity and a small number of new entrants.
Within Personal Accident in Japan, rates were down 15% to flat.
Gallagher Re explained that the market had returned to pre-2022 COVID-19 loss levels, with an oversupply of capacity. Insurers were able to issue orders with meaningful risk-adjusted reductions, without reducing their written shares.
Gallagher Re added, “Most buyers renewed without structural changes, having already achieved the desired adjustments during the previous renewal.
“While some buyers sought to maximise Communicable Disease coverage, the overall focus remained on achieving risk-adjusted savings.”
For United States General Third Party Liability, rates were down 5% to up 5%. The reinsurance broker highlighted that overall capacity for U.S. Casualty remained stable. While individual reinsurer appetites continued to shift modestly, there was less panel turnover in late Q1 and early Q2 U.S. Liability renewals.
“Pricing and individual program appetite remains sensitive to individual carriers’ performance trends and dynamics. Those who were able to provide detailed data and evidence-based arguments and analysis of underwriting and claims actions, were able to achieve favourable Yoy pricing outcomes, preserve capacity and fortify reinsurer relationships,” Gallagher Re explained.
“Those carriers who articulated a comprehensive strategy to navigate through continued market complexities with data and analytical evidence were able to generate greater capacity from their incumbent reinsurer panels and interest from new markets as reinsurers are looking to grow with “best in class” carriers.”
