Ahead of the 68th edition of the Monte Carlo Rendez-Vous (RVS), Mat Storr, Head of Reinsurance at Antares Global, has said that the upcoming renewals are likely to be more disciplined than in past soft markets.
Storr expects an orderly renewal rather than a dramatic shift in pricing, and anticipates that buyers with well-performing portfolios, strong underwriting discipline, transparent data, and consistent performance could secure more favourable outcomes.
He explained, “The industry has learnt some expensive lessons over the past decade. Capital is available, but it is being deployed with much greater scrutiny around attachment points, exposure quality, data, governance and long-term profitability. Reinsurers remain disciplined and are far more focused on portfolio quality than simply deploying capital.”
Storr continued, “Those relying on optimistic assumptions, weaker governance or insufficient exposure controls may find reinsurers becoming increasingly selective. Capacity is returning, and pricing pressure is evident across multiple classes, but discipline remains firmly embedded.
“Success over the next few years will be defined less by who grows the fastest and more by who underwrites consistently, embraces transparency, invests in data and governance, and builds enduring partnerships with brokers, clients and reinsurers. Those fundamentals have always mattered, but in today’s market they matter more than ever.”
Pricing across parts of the property, marine & specialty and casualty classes remains under pressure. This was also confirmed by a recent Fitch report, which disclosed that the European big four could face the adverse effects of several consecutive rounds of renewal price reductions to weigh on earnings in the coming quarters.
Aligning with recent Fitch analysis, Storr said that capacity has increased, reinsurer appetite has improved, and cedants with strong data and clean loss experience are achieving better outcomes on both price and structure.
Storr added, “Pricing is becoming much more differentiated by portfolio quality, loss performance, attachment point, exposure management and the credibility of the data being presented. Following recent loss activity within the Marine Specialty market in particular, differentiation is key between those accounts that have performed well and those that have not.
“I expect 2027 to be characterised by relative stability if loss activity remains within current expectations. But the market is finely balanced. A meaningful global catastrophe year, further deterioration in ongoing losses and therefore reinsurer returns or a change in investor appetite could quickly alter the tone of the market.”
Reinsurers are increasingly scrutinising how clients are managing their businesses rather than simply reviewing renewal submissions once a year. The quality of governance, claims management, exposure controls and operational oversight has become just as important as historical loss ratios, Storr believes .
