Reinsurance Capital, Analytics and Market Intelligence: Three Parts of a Successful Renewal: A year busy with global catastrophe activity will undoubtedly affect the January 1, 2012 reinsurance renewal. Whether high catastrophe losses around the world will counteract the effective management of capital remains to be seen and many factors will be brought forward on both sides of the negotiating table. Cedents are well-positioned to renew at favorable rates and conditions, as long as they bring the right information to bear. The savvy use of analytics and market intelligence can make a significant difference in the cost of cover. It pays to be prepared.
Record Catastrophe Losses of 2011 Could Impact 2012 Pricing: The first six months of 2011 experienced heavy losses from an exceptional accumulation of global natural catastrophes. A series of powerful earthquakes in Japan and New Zealand, combined with multi-billion dollar payouts from tornadoes and floods in the United States and Australia, meant the (re)insurance sector experienced the costliest first half on record in accident-year terms. Insured losses of about USD70 billion are estimated for the period. These losses are more than five times higher than the first-half average for the past 10 years and second only to the full 12-month loss of 2005.