In the Asia Pacific region, purchases in original currency terms of total catastrophe treaty reinsurance limit grew year on year. Increased purchase in Japan largely drove the growth, with lesser growth experienced in India and China. Changes in pro rata arrangements at some Australian cedents reduced the overall catastrophe excess of loss requirements from Australia; these movements were not large enough to push the overall region-wide purchase backwards.
Posts Tagged ‘reinsurance rates’
From one of GC Capital Ideas’ more popular categories, we highlight the top Chart Room stories viewed during the third quarter of 2016:
Recent Renewals Show Evidence of Changing State of Reinsurance Market
As large-scale multi-line insurers enter a period of consolidation following the significant drive to rationalize long-term strategic reinsurance purchasing, recent renewal activity suggests reinsurers are now increasingly resisting shorter-term aggressive buying strategies, according to Nick Frankland, CEO of EMEA Operations and Chris Klein, Head of EMEA Strategy Management at Guy Carpenter.
Insurance marketplaces that are stable and viable in the long-term succeed when insurers offer policies and coverages at premium rates that are appropriate and are subject to the requirements and standards of not being excessive, inadequate or unfairly discriminatory. At the same time, premium rates should be balanced and take past and prospective loss and expense experience into consideration. When these factors are not successfully accomplished, a public sector solution often emerges.
From one of GC Capital Ideas’ more popular categories, we highlight the top Chart Room stories viewed during the first half of 2016:
The chart shows the indexes for United States, United Kingdom, Asia Pacific and Europe.
The Guy Carpenter Global Property Catastrophe Rate on Line (ROL) index is presented for 1990 through 2016.
The average balance of payments in Indonesian reinsurance transactions over the past five years has been in a deficit of IDR5.65 trillion (USD455 million) per year. This has been a point of frustration for the Indonesian government. As such, the Indonesia Financial Services Authority (OJK) has instructed insurers to retain more risk and to reinsure more business with domestic reinsurers, including the recently-formed state reinsurer, Indonesia Re, to “improve and optimize capacity in the country.” The OJK has also encouraged all domestic reinsurers to obtain an international rating in order to improve competitiveness with foreign reinsurers. However, it is anticipated that high cessions to other unrated, domestic companies will increase credit risk charges and pressure capital adequacy ratios.
From one of GC Capital Ideas’ more popular categories, we highlight the top Chart Room stories viewed during the year of 2015:
1. Global Property Catastrophe ROL Index 1990 to 2015: The Guy Carpenter Global Property Catastrophe Rate on Line (ROL) index is presented for 1990 through 2015.
2. Q1 Cat Bond Issuance Reaches Historic Volume: Chart presents the 144A P&C catastrophe bond issuance from 1998 through the first quarter of 2015. The first quarter is particularly active in terms of issuance for the P&C cat bond market and this characteristic continued into 2015 as USD1.49 billion of 144A P&C cat bond limit was successfully placed with investors, the highest first quarter volume in history.
3. Return On Equity For Guy Carpenter Reinsurance Composite, Q1 2015: Chart presents return on equity for the Guy Carpenter Global Reinsurance Composite, 2004 through first quarter 2015.
4. Combined Ratio For Guy Carpenter Reinsurance Composite, Q3 2015: Chart presents combined ratio for the Guy Carpenter Global Reinsurance Composite, 2004 through third quarter 2015.
5. Private Cat Bond Market, First Half, 2015: Chart shows the private catastrophe bond market with USD 753.1 million of limit placed in rule 4(2) private placement format via fifteen transactions in the first six months of 2015. The 2015 year-to-date volume exceeded total full-year issuance in 2014 of USD 561.5 million.
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