Reinsurance broker Guy Carpenter sheds light on key changes in supply and demand dynamics within the specialty reinsurance sector, which includes non-marine, marine & energy, aviation & aerospace, and trade credit, bond & political risk. parts.
These observations are expected to influence the negotiations to put the change in the coming months, the report said.
The global specialty reinsurance market is navigating a turbulent time in its history, with the January 1, 2023 changes proving to be one of the most challenging placement times in decades.
This upheaval is primarily driven by a confluence of macro-economic factors and historical performance issues, resulting in massive changes in almost every sector.
Although the waters have calmed somewhat since then, the market continues to face challenges. Notably, rate pressures continue in key markets, and limited capacity at the lower end of insurance programs remains a concern.
In addition, there have been significant changes in reinsurers’ appetites for specific areas of coverage, leading to strict terms and conditions.
James Boyce, CEO of Global Specialties at Guy Carpenter, emphasized the importance of preparedness in this environment, saying, “In the current environment, preparation is key. The ability of clients to express their portfolio effectively and demonstrate the success of their underwriting strategy will be central to productive negotiations. In addition, access to a broad mix of products and capital pools and the arming of comprehensive data in the market promoting a well-defined innovation strategy is essential.”
