Speaking during the Marsh McLennan Q1 2024 earnings call, Dean Klisura, CEO of reinsurance broker Guy Carpenter, explained that US casualty was challenging at the April 1st, 2024, renewals, with reinsurers “exerting pressure on pricing and terms and conditions.”
Klisura highlights that the difficulties experienced in the US casualty market were comparable to those encountered during the January 1 renewals. This continuity of challenges reflects ongoing concerns among reinsurers regarding issues such as social inflation, litigation funding, and emerging liabilities.
Klisura emphasises, “Reinsures are exerting pressure on pricing and terms and conditions. Ceding commissions are facing downward pressure from reinsurers on certain quota share contracts, particularly financial lines.”
He adds, “Excess of loss contracts are seeing rate increases across the board, in some cases double digit.”
Despite these challenges, Klisura reassured that “there was adequate casualty capacity in the marketplace at April 1, and all the programmes that we placed got completed in full.”
However, he cautioned against overlooking reinsurer concerns regarding adverse development fueled by social inflation and escalating loss cost trends.
His comments were made during the firm’s latest earnings call, which discussed a solid performance for the group, including revenue growth to $1.1 billion at Guy Carpenter.
