Posts Tagged ‘Continental Europe’
2013 will be remembered in Europe in part as the year of the flood, with the worst flood event affecting several Central European countries in June. Estimated insured losses from this event were around USD4.1 billion, with economic losses of around USD18 billion (1). Persistent heavy rain caused the Vltava, Elbe and Danube Rivers to overflow their banks and in some cases breach flood defenses. Countries affected included Germany, the Czech Republic, Slovakia, Austria, Switzerland, Hungary and Poland.
Guy Carpenter & Company released its 2013 Catastrophe Review, which shows that natural catastrophes and man-made disasters in 2013 resulted in insured losses of approximately $40 billion. Following above-average losses experienced in 2011 and 2012, 2013 provided a respite for the (re)insurance industry as insured losses were considerably less than the ten-year average of approximately $60 billion.
The chart compares changes at January 2014 with January 2013.
The January 1, 2014 renewal saw rates on line (ROLs) fall significantly in nearly all regions and business segments as relatively low loss experiences, strong balance sheets and an influx of capital spurred competition and innovation in the reinsurance market. This culminated in a marketplace focused on meeting individual client needs as reinsurers reacted to the challenge posed by alternative markets and alternative markets, in turn, sought to deliver unique solutions. Insurers also looked to capitalize by adapting their buying strategies and prioritizing their risk transfer goals.
Guy Carpenter & Company reports that reinsurance rates-on-line fell at the January 1, 2014 renewal in nearly all classes and regions. According to Guy Carpenter’s 2014 global renewal report, strong balance sheets, relatively low loss experiences and an unprecedented influx of convergence capital spurred competition and innovation at renewal. These factors led in turn to surplus capacity across most business segments as competition spilled beyond property catastrophe lines.
Georg H. Fülles, Head of European Casualty Strategy and Morley Speed, Managing Director
Reinsurance buyers in Continental Europe have complained for decades about an imbalance between property lines and casualty lines in the depth of knowledge and services offered by brokers. Reinsurance broking has predominately been driven by expertise in property lines and, particularly, in the natural catastrophe area. Guy Carpenter has recently closed this gap with its new Casualty Solutions Group (CSG).