Rate Movements Moderated by Availability of Capacity as Negotiations Center on Pricing and Terms at January 1, 2021 Renewals: Price increases at the January 1, 2021 reinsurance renewals were moderated compared to initial expectations by abundant capital levels and an increased willingness on the part of reinsurers to deploy capacity in several sectors, according to Guy Carpenter. Hallmarks of the January 1, 2021 renewals included an earlier start, a slower and more complicated quoting process and rigorous contract reviews.
Video: (Re)insurance Startups – The Class of 2020: As capital continues to be drawn to the opportunity of improved pricing conditions across the (re)insurance market, the emerging class of 2020 (re)insurance startups is expected to bring both long-term and committed solutions to brokers and cedents, according to Lara Mowery, Global Head of Distribution at Guy Carpenter.
COVID-19 Coverage Uncertainties and January Renewals: Reinsurance renewal negotiations are delicately poised, with increasing pressure on rates, economic uncertainty and disputes over COVID-19 wordings putting long-standing relationships to the test, according to a recent article in Insurance Day from Massimo Reina, CEO for Continental Europe at Guy Carpenter.
Chart: U.S. Property Catastrophe Rate-On-Line (ROL) Index – 1990 to 2020: The chart in the link below shows the Guy Carpenter U.S. Property Catastrophe Rate-on-Line (ROL) Index for the period 1990 to 2020.
Leading Up to January 2021 Reinsurance Renewals: Guy Carpenter’s new briefing, Leading Up to January 2021 Reinsurance Renewals, highlights the myriad market developments providing the backdrop to January 1, 2021 renewals.
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A.M. Best COVID-19 Stress Test: In May 2020, A.M. Best announced details of its COVID-19 stress test. The stress test results showed strong capitalization and a Best’s Capital Adequacy Ratio (BCAR) decline of less than 10 percent.