In the realm of international liability and professional lines, the recent renewals unfolded with relative calm, indicating stability in the market, according to Gallagher Re’s 1st View renewals report on International Casualty.
The majority of renewals were concentrated in Australia and New Zealand, with only a few in Europe. This commentary encompasses businesses that fall due for renewal in Europe, the Middle East, Africa, Latin America, and the Asia Pacific region.
Many of the renewals that took place on July 1st involved combined liability placements, with buyers assuming significant retentions.
However, in the realm of professional lines, several placements exhibited comparably low retentions, and all buyers managed to maintain their retention levels.
It is worth noting that the majority of renewals were conducted on an excess of loss basis, emphasising a risk-averse approach by insurers.
Reinsurers have been seeking rate improvements overall, resulting in modest price increases for most of the placements.
You can see rate movements for international casualty business at July 1st below, compared with changes for other areas of the casualty space.
Nevertheless, there were variations across Asia, particularly in China, where the renewals showcased a more diverse picture. While some placements experienced significant hardening, others witnessed more moderate changes.
A positive development worth highlighting is the improved response times from reinsurers compared to a year ago.
Additionally, quotations received from reinsurers were more tightly grouped this year, reflecting a clearer consensus on pricing.
Placements with lower attachment points encountered more significant rate increases, largely driven by inflationary pressures or specific claims activity.
However, the availability of capacity across the international market remained ample, providing a favourable environment for buyers.
It is important to note that some reinsurers opted to offer only their expiring signed line rather than the written line, thereby reducing the over-placement margin. This strategy suggests a cautious approach by reinsurers to manage their exposure, notes Gallagher Re.
Moreover, the industry has continued to engage in discussions regarding systemic and accumulative casualty risks, with a particular focus on emerging concerns such as cyber risks and mental anguish.
