During Marsh McLennan’s third-quarter earnings call, President and Chief Executive Officer (CEO), John Doyle, shared valuable insights into the state of the reinsurance market and the expectations for the January 1st renewal.
“As we look to January 1st, the market appears to be more orderly than last year, but we expect underwriting discipline to continue,” Doyle said.
However, concerns linger in both the insurance and reinsurance sectors regarding escalating loss expenses. As there is still a quarter left in the year and the future remains uncertain, precise projections are challenging, Doyle noted.
On the property side, Doyle expects firm pricing and a more stable market with ample capacity and a growing appetite among reinsurers.
In the casualty market, a cautious atmosphere prevails, with reinsurers carefully evaluating prior year loss development and the impact of inflation. Despite this caution, the capacity in this sector is expected to remain stable, Doyle noted.
“Overall, clients will need thorough preparation and a proactive strategy to achieve desired outcomes,” he said.
He expressed confidence in Marsh McLennan’s capabilities to assist clients in navigating these complex market conditions.
Meanwhile, Marsh McLennan recently reported consolidated revenue of $5.4 billion for Q3’23, supported by solid revenue growth at Guy Carpenter, its reinsurance broking arm.
Guy Carpenter reported total revenue of $359 million in Q3’23, marking an increase of 8% on an underlying basis.
“Our team at Guy Carpenter’s done a terrific job this year, helping our clients navigate what’s a challenging market,” Doyle said.
