Amid a “very late” January 1 renewal this year, reinsurers need to remain vigilant and monitor for any terms and conditions (T&Cs) slippage, according to Jon Sullivan, Group CUO at Brit Insurance.
As the market approaches the January 1 deadline, Sullivan describes the current renewal season as very late, noting that while the majority of data has been analysed and deals assessed, the market is awaiting client firm order terms.
“Whereas price movements are much easier to monitor, the rush means reinsurers will need to be on their toes to monitor for any T&Cs slippage,” he said in an interview with Reinsurance news.
Adding: “What we are seeing isn’t new, but it has been some time since we saw this level of uncertainty and lateness. It is, however, just the part of the cycle we are moving into and as such will require the appropriate caution.”
Sullivan also pointed to a complex landscape at year-end 2025. He noted that available margin is driving continued interest in the sector, resulting in inevitable pressure on rates and signings.
“But, so far, we are seeing limited relaxation of product (such as Aggregate) or expansion of T&Cs, though some is emerging,” said Sullivan.
“We could see buyers looking below existing retentions, or above existing limits, if more value in product is brought to the fore. However, pricing may not reach that level at 1.1,” he added.
Looking ahead to opportunities and expectations in 2026, Sullivan offered some points on how to best manage the cycle.
“A core book will be valuable to lean on in 2026 as the market cycle moves on. Leadership will become ever more critical and panel rationalisation can be expected.
“Nimbleness, correct initial pricing, and meaningful capacity will help with seizing opportunities that arise,” said Sullivan.
