Reinsurance renewals at January 1, 2020, were shaped by deteriorating loss experience, a lack of new capital inflows and increasingly challenged environments in the primary insurance and retrocession markets.
The loss environment and shifting views (and appetites) of risk have been catalysts in changing market sentiment. The impact of risk reassessments has initiated derisking exercises throughout many segments of both the primary and reinsurance markets. As a result, many participants have scaled back or withdrawn capacity from several (underperforming) lines of business, creating a notable impact.
Market conditions remain favorable in the reinsurance sector, which continues, in the main, to operate in an environment of abundant capital and capacity. But this is certainly not a one-size-fits-all market.
Guy Carpenter is pleased to present our January 2020 Reinsurance Renewal Report: An Asymmetrical Market.