Ed Fenton, Managing Director
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Capacity Purchased, Deductibles, and Pricing

In the face of a difficult market for capacity, the overall purchased limit actually increased at the April 1, 2009 renewal in Japan. This was not easy to accomplish, and cedents searched all available markets exhaustively to ensure that all capacity that could be bound at current pricing was bound. Buyers looking for significant increases in capacity had to pay relatively enhanced pricing to attract new support.

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Ed Fenton, Managing Director
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Reinsurance rates generally increased in Japan at the April 1, 2009 renewal. Specific changes, however, varied by line of business. There was not a substantial shortage of capacity, though conditions were tighter this year than at prior April 1, 2009 renewals. These conditions are consistent with worldwide reinsurance rate and capacity trends.

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Hamish Dowlen, Senior Vice President
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2008 Reinsurance Market Position

The 2006 “weight of snow” losses had an effect on the 2006/2007 renewal season, as many reinsurers had not previously considered this peril a serious risk for catastrophe programs. Due to the difficulty in ascertaining the duration of a weight of snow event, a number of programs abandoned an hours clause for this peril and introduced an annual aggregate feature instead. Loss-affected layers experienced modest price increases in most cases, but otherwise prices were stable or slightly reduced for the majority of companies.

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