At $610 billion, global reinsurance capital has returned to a peak levels while total capacity has grown 4% since the end of 2018, according to a market outlook from Aon.
Aon also highlights how, following hurricane Dorian’s near-miss with Florida, the industry escaped significant losses in what remains the peak region for insured property catastrophe risk.
Meanwhile, alternative capital remains flat against Q1 2019 and significant capital is still trapped due to prior losses.
Cat bonds, though down in issuance, remain near peak total outstanding capacity.
Elsewhere, cat losses for the year remain below the 10-year average for the same period.
The industry has seen insured catastrophe losses of $27 billion in the aggregate with five losses exceeding $1 billion in insured property cat loss.
Looking forward to the January renewals, Aon expects demand to remain stable with slight increases in casualty lines as primary rates continue to increase, new potential loss exposures remain, and reserve positions reach a tipping point for some insurers.