The mid-year reinsurance renewals at June and July 1st 2020 are expected to proceed without any major issues due to the COVID-19 pandemic, as the industry prepares to negotiate via video conference, David Priebe, Chairman of Guy Carpenter told us.
Speaking with Reinsurance News, the Chairman of reinsurance broker Guy Carpenter said that the industry has responded well to the coronavirus crisis and as a result renewals are expected to continue as normal.
“Despite the major recent upheaval to working practices, 1 April renewals took place on time and with few reported problems,” Priebe explained.
Adding that, “The focus is now on ensuring smooth mid-year renewals, which will be handled via video conference. We don’t foresee any timing issues with these either.”
The COVID-19 coronavirus pandemic has presented the industry with “major logistical and transactional challenges” Priebe said, but he feels the response has been admirable and as a result continuity assured for clients and markets.
“The industry response has been impressive. Insurers, reinsurers and brokers have broadly made the transition to remote working without major problems or delay, and business continues to be transacted effectively. A combination of technology solutions and human creativity has enabled seamless communication between parties to continue. Given the effectiveness of the response so far, it has not been necessary to extend contracts unless there are specific reasons,” he told us.
The pandemic will, of course, have an impact at the reinsurance renewals though, but this is expected to be at the level of risk appetite and demand for protection.
As our recent market survey found, over 30% of respondents said that their appetite for reinsurance protection was likely to increase as a result of the virus outbreak.
Priebe explained, “Ceding companies do not yet understand the full impact of COVID-19 on their portfolios, so mid-year renewals will focus heavily on portfolio impact, positioning and underwriting actions.
“Brokers will have a key role to play in helping clients and reinsurers conclude these transactions.”