Artemis ILS NYC 2020

Menu

Reinsurance News

Reserve deterioration a potential inflection point in 2020: GC’s Whitmore

8th January 2020 - Author: Charlie Wood

Ongoing challenges associated with reserve deterioration in the re/insurance industry represent a potential inflection point that demands close attention moving into 2020, according to Charles Whitmore, managing director at Guy Carpenter.

whitmore_charlesSpeaking at a lecture in Lloyd’s Old Library building, Whitmore described the issue as something spreading – accelerating, even – and being driven by a combination of factors including social inflation and a marked increase in in litigation.

“In the US,” Whitmore noted, “jury awards are increasing considerably. High-loss costs have been apparent in commercial for several years, but are also now manifesting in directors and offices, medical professional, general liability and other liability lines.”

As a result, Whitmore said how some carriers with significant exposures in these areas have started to rethink underwriting appetites and pullback, or in some cases withdraw, capacity.

“Identifying the claimants and jurisdictions that have the highest potential for litigation, will be an important part of this re-underwriting process,” he added.

The purpose of Whitmore’s lecture at the Lloyd’s of London building was to examine the state of the re/insurance market leading into the renewal season.

A recent report by Guy Carpenter suggested that levels of available reinsurance capital continued to exceed demand at the January 1, 2020 renewals, meaning rate increases only materialised in the most constrained areas of the market.

The reinsurance broker said that the loss environment and shifting views of risk had been crucial factors at the 1/1 renewals, but that outcomes had varied significantly by geography, line, and cedent, with performance being one of the key differentiators.

Recent Reinsurance News

Getting your daily reinsurance news from Reinsurance News is a simple way to receive only the reinsurance industry news that matters, delivered directly to your email inbox.

  • Only email is mandatory, but the more you tell us about yourself the better we can serve you in future!
  • This field is for validation purposes and should be left unchanged.

By submitting the form you are giving your consent to be emailed by us.

Read previous article:
Generali finalises purchase of Apollo units in Portugal

Italian re/insurer Generali has finalised its acquisition of Seguradoras Unidas and the service company AdvanceCare from Apollo Global Management, Inc....

Close