Skip to main content
Survey Report

The Perils of Unmodeled: Willis Re 1st View

April 2021 reinsurance renewal trends

Reinsurance|Insurance Linked Securities
COVID 19 Coronavirus|Insurer Solutions

April 1, 2021

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.

Issued three times a year, this publication delivers the very first view on current market conditions within the reinsurance industry, covering the changes in pricing levels and conditions experienced by Willis Re brokers and product experts.

Key findings

  • 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.
  • Despite above-average insured natural catastrophe losses in 2020, most property catastrophe excess of loss programs renewing at April 1 delivered a largely loss-free year.
  • Some property per-risk programs were impacted by the worsening frequency and severity of non-catastrophe losses, which led to pricing increases and program restructuring. Aggregate covers particularly saw greater focus on structure than on price, as reinsurers worked to distance these accounts from attritional losses.
  • Pandemic and silent cyber exclusionary language followed the approach set at January 1, through a combination of standard clauses and, from some reinsurers, customized language written to align with original policy wordings.
  • Demand from insurance-linked securities investors proved strong, particularly for capacity made available through publicly traded bonds, which helped to moderate overall price increases.
Download
Title File Type File Size
The Perils of Unmodeled: Willis Re 1st View PDF 1.1 MB
Content Inquiries

Charlie Hinchliffe
Vice President, Willis Re

Related Capabilities

Contact Us