Reinsurance renewals at April 1, 2008, sent mixed signals to the global market. Cedents pushed hard for rate reductions in Asia. Reinsurers stood firm, though, as rates in general are already close to technical levels. The majority of rate decreases, therefore, were single-digit. U.S. cedents pushed as well. While reinsurers resisted, competitive forces prevailed, and rate reductions were substantial. Decreases can be achieved, it seems, if rates are above technical levels. Insufficient rate levels and poor loss histories led to reinsurer discipline.
April 15th, 2008
Posted at 1:06 PM ET