Posts Tagged ‘renewal’



August 28th, 2014

US Terrorism Market: TRIPRA

Posted at 1:00 AM ET

The focus on the availability and affordability of terrorism (re)insurance coverage comes as the US House of Representatives and Senate are currently considering various changes to Terrorism Risk Insurance Program Reauthorization Act (TRIPRA). TRIPRA expires on December 31, 2014 and the future of the federal backstop is the headline issue within the terrorism market this year given that either substantial modification or non-renewal have the potential to impact terrorism coverage in the United States. The full Senate passed their committee’s recommended version 93-4 on July 17, 2014. The House of Representatives has yet to vote on their version. Implications could also be felt outside the United States. How the expiration of TRIPRA would affect the global terrorism market remains unclear but one possible outcome could see increased pressure on other pool structures to dissolve, resulting in fragmentation towards a more open market approach.

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July 7th, 2014

July 1 Renewals Reveal Continued Double Digit Price Decreases Across Many Lines and Geographies

Posted at 5:00 AM ET

Guy Carpenter reports that market pressures at July 1 renewals continued to drive price decreases across virtually all geographies and lines of business, many in the double digit range. As loss activity remained minimal, reinsurers added to surplus capacity and additional capital continued to come into the market via alternative sources. 

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June 9th, 2014

Review of Rate Change Measures

Posted at 1:00 AM ET

With Guy Carpenter reporting that reinsurance pricing fell again at June 1, 2014, we review some of the rate change measures released by Guy Carpenter earlier this year:

Chart: Rate Movements by Business Segment: Reports rate movements at January 1, 2014.

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Chart: Global Property Catastrophe ROL Index: The Guy Carpenter Global Property Catastrophe Rate on Line index is presented for 1990 through 2014.  The index fell by 11 percent at January 1, 2014.

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June 2nd, 2014

Reinsurance Pricing Falls Again at June 1, 2014 as Competition Heightens

Posted at 11:30 PM ET

Guy Carpenter reports that downward pressure on reinsurance pricing has increased since the June 1, 2013 renewal due to continued competitive pressure from alternative markets, strong reinsurer balance sheets and low loss experiences. In its June 2014 renewal briefing, Guy Carpenter reports that competition increased as markets offered abundant capacity at reduced pricing.  Terms and conditions also came under pressure and multi-year transactions continued to be an area of investigation. Traditional reinsurers sought to protect their market share and alternative providers looked to utilize growing funds.

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May 28th, 2014

2014 Reinsurance Renewals

Posted at 1:00 AM ET

As we approach the June 2014 reinsurance renewals, we review the reinsurance renewals Guy Carpenter has reported on so far this year.

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

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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.

Read the article>> 

 

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.

Read the article>> 

 

Click here to register to receive e-mail updates >>

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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