Posts Tagged ‘renewal’



April 16th, 2014

Reinsurance Renewals in 2014

Posted at 1:00 AM ET

As we complete the April 1, 2014 reinsurance renewal, we review the GC Capital Ideas renewal stories of 2014. 

January 1, 2014 Renewals Bring Downward Pressure on Pricing: Guy Carpenter 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.

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April Renewals Bring Price Reductions & Focus on Tailored Coverage: Guy Carpenter reports that the April 1, 2014 renewal was marked by price reductions and more tailored reinsurance coverage. Strong balance sheets, an abundance of capacity and a consolidation of buying led to lower reinsurance pricing across most territories and business segments at the renewal.

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April 9th, 2014

April Renewals Bring Price Reductions & Focus on Tailored Coverage

Posted at 11:30 PM ET

Guy Carpenter  reports that the April 1, 2014 renewal was marked by price reductions and more tailored reinsurance coverage. Strong balance sheets, an abundance of capacity and a consolidation of buying led to lower reinsurance pricing across most territories and business segments at the renewal.

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February 4th, 2014

Chart: Rate Movements by Business Segment

Posted at 1:00 AM ET

Reports rate movements at January 1, 2014.

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January 29th, 2014

Chart: European Property Catastrophe - Typical ROL Changes

Posted at 1:00 AM ET

The chart compares changes at January 2014 with January 2013.

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January 27th, 2014

Chart: U.S. Property Catastrophe Reinsurance Quoting Behavior

Posted at 1:00 AM ET

In the figure below, the January 1, 2014 average quote across all programs is represented by the line at 0 percent, while the red dots indicate reinsurers’ distances from the mean across all the programs that they quoted. The size of the line represents the variability from the average for all quotes provided by the reinsurer. Each reinsurer is represented across the bottom of the chart by its A.M. Best rating. Quotes representing non-concurrent terms were excluded.

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January 23rd, 2014

Chart: Regional Property Catastrophe ROL Index

Posted at 1:00 AM ET

The chart shows the indexes for United States, United Kingdom, Asia Pacific and Europe

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January 5th, 2014

January 2014 Renewal Report: Capacity: Evolution, Innovation and Opportunity

Posted at 11:45 PM ET

354_354-renewal-2The 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. 

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December 29th, 2013

January 1, 2014 Renewals Bring Downward Pressure on Pricing

Posted at 11:00 PM ET

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.

Continue reading…

December 16th, 2013

Review of 2013 Reinsurance Renewals

Posted at 1:00 AM ET

As we anticipate the January 1, 2014, reinsurance renewal, we review here the major renewals that occurred in 2013 as reported in GC Capital Ideas.

July 1 Renewals Indicate Downward Pressure on Reinsurance Rates Likely to Continue through 2013: Guy Carpenter reports that reinsurance market rates on line (ROLs) continued to be driven by an influx of capital from third-party investors at the July 1 renewals, in spite of catastrophe losses reaching approximately USD20 billion during the first six months of 2013 (above the ten-year average for the period).

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Influx of Convergence Capital Triggers Downward Pressure on Pricing at June 1 Renewals: Guy Carpenter reports that the reinsurance sector has witnessed dynamic capital growth in 2012 and 2013, spurred by an influx of capital from alternative sources. In its June 2013 renewal briefing, Guy Carpenter finds that this surge in alternative or “convergence” capital has changed the nature of the sector’s capital structure, as investors grow increasingly comfortable with supplying capacity through a convergence of both traditional and alternative vehicles.

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April 1 Renewals See Reinsurance Pricing Stabilize Amid Dynamic Capital Growth:  Guy Carpenter reports that dynamic capital growth and ample reinsurance capacity resulted in a relatively stable renewal at April 1, 2013. In a briefing, Guy Carpenter comments that the convergence of traditional and alternative capital sources is changing the marketplace, with non-traditional capacity now making up an estimated 14 percent of global property catastrophe limit.

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November 3rd, 2013

Demand for Asia Pacific Catastrophe Reinsurance at a Record High in 2013

Posted at 5:00 PM ET

Total Asia Pacific catastrophe limit purchased in 2013 increased for the tenth year in a row, but once again failed to keep pace with strong gross domestic product growth in the region, according to a new report released today by Guy Carpenter.

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