The Scandinavian market was characterized by increased capacity provided by several reinsurers. Soft market conditions prevailed and rate changes were generally flat to declining. Loss-free cat excess of loss lines were flat to declining 5 percent. Property Risk business without losses was flat to down 5 percent. However, Property Risk business with losses, experienced rate changes that were flat to increasing 5 percent.
The reinsurance capacity increases were driven by factors including: reinsurers’ perception that Nordic area ratings levels are competitive, better understanding of the business, beneficial impact of recent model changes and favorable results. Lloyd’s and Bermuda markets have recently increased writings in the region.
Another notable change occurred as the market moved from an insignificant level of over-placement in 2009 to one of 10 percent to 20 percent over-placement this year. Signings were driven by a movement to diversify and improve market security.