March 5th, 2010

Benelux Property Renewals

Posted at 10:00 AM ET

Average rates on line remained stable on exposures that generally increased in size at the renewal season in the Benelux countries (Belgium, Netherlands, Luxembourg). Buyers, cognizant of the emerging capital standards around Solvency II, often increased their purchased capacity.

Gross net premium income declined in Belgium at the 2010 renewal as a result of a decrease in values as dictated by decreases in the building index during 2009.

Reinsurers based outside of Continental Europe increased capacity in 2010, although those based in Continental Europe continued to show flexibility compared with other markets. Catastrophe aggregate solutions, their placement eased by the softer market of 2010, remained in place with the aim of protecting buyers’ earnings.

Programs were mostly oversigned by a small degree and the signing was largely based on 2009 shares. New reinsurers only obtained any additional capacity or replaced reinsurers who did not renew. This process of determining where the capacity is placed is often driven by the clients because they have the best insight on their overall placements.

Non-concurrent terms were less prevalent than they were at the 2009 renewal as the market was more flexible and brokers were receiving more favorable terms in order to finalize their placements.

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