Reinsurance News
Reinsurance renewals news
Reinsurance renewals are the key points in the year when the majority of reinsurance contract renewal negotiations occur and are completed.
The reinsurance renewal seasons provide insight into reinsurance pricing, contract terms, reinsurance market positioning and the direction of future trends in the market.
Bermuda re/insurers to see improved pricing & performance in 2023: Fitch
24th January 2023
Despite heightened catastrophe losses and economic uncertainty, Fitch Ratings expects improved underwriting performances for Bermuda re/insurers in 2023, driven mainly by accelerating premium rates, alongside a market reset in pricing, terms and conditions. The rating agency states that the underwriting performances of Bermuda re/insurers are positioned to improve as the aforementioned ... Read the full article
Casualty market stable despite complications at renewals: Aon
24th January 2023
Relative to other reinsurance markets, the casualty market remains generally stable following the January renewals period, according to a recent report by re/insurance broker Aon. This is despite renewals being complicated by the demand-supply mismatch in property catastrophe. The quotation process was delayed and more involved than recent renewals, as reinsurers ... Read the full article
New insurer entrants “non-existent” for 2023: Alliant
23rd January 2023
Analysts at Alliant have predicted that new insurer entrants will be “almost non-existent” for 2023 as the property market grapples with the changes to reinsurance pricing and terms. In an end of year report, Alliant noted that insurance to value was an issue for the property market throughout all of 2022 ... Read the full article
Stresses of 1/1 should disappear at later renewals: Swiss Re’s Mitchell
23rd January 2023
Mike Mitchell, Head P&S Underwriting Reinsurance at Swiss Re, has assured that some of the stresses of the January reinsurance renewal should “disappear” during the later renewal periods this year, even as efforts to rebalance market dynamics continue. Mitchell and Gianfranco Lot, Head Globals Reinsurance at Swiss Re, recently shared their ... Read the full article
Reinsurers “firmly in control” of terms at renewal: JMP
20th January 2023
Analysts at JMP Securities have concluded that reinsurers are “firmly in control” of pricing and terms following the January 1 renewal period, with favourable conditions likely to remain in place beyond 2023. JMP made this assessment of the market following meetings with insurers, reinsurers, and brokers around 1/1, when it became ... Read the full article
TWIA targets $2.9bn in reinsurance for 2023 storm season, taking total funding to $5.2bn
20th January 2023
The Board of the Texas Windstorm Insurance Association (TWIA) has voted to purchase $2.9 billion in reinsurance for 2023, which combined with $2.28 billion in statutory funding, would take the association's total funding for the upcoming storm season to $5.2 billion. During yesterday's meeting, the Board voted to establish TWIA's 1:100 ... Read the full article
2023 renewals the most challenging in a generation, says Aon’s Monaghan
19th January 2023
According to Joe Monaghan, Global Growth Leader Reinsurance Solutions, Aon, the January 2023 renewals were the most challenging in a generation as the reinsurance market underwent a fundamental shift in pricing and risk appetite, marking a moment of truth for the industry and a new reality for buyers. Monaghan states that ... Read the full article
Hippo completes 2023 reinsurance placement on improved terms despite difficult market
18th January 2023
Home insurance group, Hippo, has announced the successful placement of its reinsurance program for the year ahead, which, in spite of challenging market conditions, includes a 32% rise in per-occurrence excess of loss (XoL) limit within the carrier's non-proportional treaty. "In one of the most difficult reinsurance markets in the last ... Read the full article
Renewal outcomes strong but longevity uncertain: Berenberg
18th January 2023
Analysts at Berenberg have commented that the outcome of the January renewals looks to be “strong” for reinsurers, but say that it remains uncertain how long hard market conditions will persist. Berenberg expected the reinsurance market to remain hard at least through 2023 due to broad-brush inflation, consecutive years of high ... Read the full article
International Group details reinsurance structure for 2023
16th January 2023
The International Group of P&I Clubs has completed its pooling and GXL reinsurance contract structure for 2023/24, securing coverage with only a “small increase in rates” for shipowners, despite challenging market conditions. To date, the IG has seen a benign pool claims environment for its 2022/23 program, but it notes that ... Read the full article
Renewals an opportunity for global aerospace insurance market to re-set: Gallagher
16th January 2023
The 2022/2023 aerospace reinsurance renewals season is a chance to re-set retention levels, policy conditions and pricing levels to enable the global aerospace (GA) insurance market to continue to serve its end-user client base, according to Gallagher analysts. This opportunity presents itself as this renewals season for the global insurance market ... Read the full article
Falvey ups underwriting capacity with changes to program
13th January 2023
Specialist MGA Falvey Insurance Group has announced that it has increased its underwriting capacity from January 1st, via expanded partnerships with its key supporting carriers. In total, Falvey partners with 35 different carriers or syndicates on 36 different underwriting facilities via its 4 MGAs. Major changes to the program this year include ... Read the full article
IAG renews Berkshire Hathaway quota share, but relationship changed
12th January 2023
Australian insurer IAG has announced the renewal of its largest Whole of Account Quota Share (WAQS) agreement, with National Indemnity Company (NICO), a subsidiary of Berkshire Hathaway, but there have also been key changes to the terms of the relationship between the companies. For instance, Warren Buffett's company will be free ... Read the full article
TWIA may need $2.964bn of reinsurance for 2023, based on newly set 1:100 PML
12th January 2023
The Texas Windstorm Insurance Association's (TWIA) Actuarial & Underwriting Committee met yesterday to recommend the Board set $5.244 billion as the entity's 1-in-100 probable maximum loss (PML) for the upcoming storm season, which suggests that TWIA could end up buying some 46% more in reinsurance limit for 2023. Following a presentation ... Read the full article
FEMA shrinks NFIP reinsurance program by over 50% amid hard market
11th January 2023
The U.S. Federal Emergency Management Agency (FEMA) has completed its 2023 traditional reinsurance placement for the National Flood Insurance Program (NFIP), transferring an additional $502.5 million of flood risk to the private reinsurance market for a total premium of $90.2 million. Together with its three in-force catastrophe bond transactions, FEMA has ... Read the full article