As negotiations intensify ahead of the January 1st, 2024, reinsurance renewals, Wade Gulbransen, Head of North American Reinsurance at Howden Tiger, has said that the broker sees the market continuing with both price and coverage into next year.
Speaking with Howden Tiger’s Head of Business Development, Michelle To, as part of the reinsurance broker’s nine month re/insurance sector review, Gulbransen provided an outlook on pricing heading into 2024.
“Focusing on the US market it’s important to split between admitted and non-admitted. From a non-admitted E&S wholesale perspective, we do see rates moderating, though still increasing into 2024,” said Gulbransen.
Expanding on this, Gulbransen said that over the past two years there’s been massive back-to-back rate rises in the space but noted the lack of carriers increasing limits.
“Many markets continue to push ITV and shifting away from blanket property limits,” continued Gulbransen.
In terms of specific regions, Gulbransen explained that Florida rates on shared layer business still outpace other states, adding that although E&S carriers are writing more premium, they are really balancing a flat PML because of the rates and lower limits they are issuing.
“As we turn to the admitted market, though, we do see rates continue to increase and persist through 2024 and probably into 2025. And that’s simply because it takes the companies longer to actually implement and push those rates into their primary business, and that’s because of insurance departments and regulatory approvals,” said Gulbransen.
“So, in short, we do see the market continuing with price and coverage, and it will vary by market, by segment, but we do see it continuing into the 2024 calendar year,” he concluded.
