Reserving: Higher Uncertainty Puts Adequacy in the Spotlight

Reserves and insurance capacity

Larger reserves for the most recent years and a cushion for as-yet unreported claims suggest a solid buffer is in place, but recent shocks are pushing up claims, raising questions about adequacy. With uncertainty high, insurers may reduce risk appetite and new business capacity, which may in turn sustain the hard market conditions.

How to Help Your Clients in the Tough Property Insurance Market

Property insurance market

The commercial property insurance market remains challenging, with several factors contributing to difficult conditions and premium increases. First, the frequency and severity of catastrophic events have caused significant losses globally. Second, reinsurance costs have risen due to catastrophic events, inflation, and selective reinsurance. Third, underinsurance is a concern, with many business owners needing to adjust their policy limits.

More of the Same for April 1 Reinsurance Renewals

International reinsurance renewals completed for April 1, 2021 followed trends set earlier in the season, as market pricing remained firm in virtually all classes and territories. Capacity was adequate across the board, and no substantive changes took place in negotiations over exclusionary language, according to the latest 1st View renewals report from Willis Re, the… Continue reading More of the Same for April 1 Reinsurance Renewals

Reason and Logic Govern Firming Reinsurance Landscape: Willis Re 1st View

P&C underwriting performance improves except Person Lines

Despite the impact of COVID-19 both on working conditions and exposures – and with discussions of the latter largely deferred until after 1 January treaty renewals – reinsurers have largely arrested the persistent downward trends which characterised recent years. For buyers, terms and conditions have overall been less onerous than initially feared again revealing the… Continue reading Reason and Logic Govern Firming Reinsurance Landscape: Willis Re 1st View