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The reinsurance market sees a wide range of price increases



Reinsurance prices have risen in recent months, but the level of increases varied widely, experts say.

In addition, it depends on the type of coverage offered, they say.

Recent reinsurance renewals have seen a number of results, said Doug May, Seattle – based president of Willis Re North America, a unit of the Willis Towers Watson PLC.

He spoke during a panel discussion at the annual meeting of American Property. Casualty Insurance Association, which was held online due to the pandemic.

A selection of property / disaster reinsurance investments from April 1 to July 1 a variation in interest rate hikes, May said.

Florida's market rose 20% to 35%, May said, and renewals in July increased by more than 20%.

There was also a huge differentiation in the stratification of increases, May said.

About 1

0% of renewals were "beautiful flat," about 35% experienced less than 15%, another 35% increased by 15% to 30% and about 20% increased more than 30%, he said.

"It was unparalleled," said May. "We had never seen that kind of price variation before. It says that this market is very much an individual market."

Much of the variation is due to individual cedents, "said Will Garland. President of North America's Leading Competence for Guy Carpenter & Co. LLC in New York. [19659002] For reinsurance of accidents, Guy Carpenter saw increases of 5% to 20%, while financial lines were "generally flat", he said.

Terms changed "During the pandemic, the discussion revolved around the exclusion of communicable diseases," Garland said. "They have become the standard for commercial lines exposed treaties." Exclusion of infectious diseases is seen only in selected areas, such as compensation for workers.

The biggest change in the renewal process, May said, is the use of private warehouses. In a tough market, "some capacity providers" will negotiate with individual cedents. This is prominent in the Florida market, he said.

Cedents want to be "differentiated", judged on their own achievements and individual merits, and not "painted with a broad brush," Garland said.


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