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Survey Report

Willis Re 1st View July 2019: A Discerning Market

Reinsurance
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July 1, 2019

Strengthening primary insurance market conditions underpinned improvements to reinsurance prices, terms and conditions at the June 1, and July 1, 2019, renewals according to the latest 1st View renewals report from Willis Re.

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:

  • Strengthening primary insurance market conditions underpinned improvements to reinsurance prices, terms and conditions at the June 1, and July 1, 2019 renewals.
  • Almost all buyers were able to secure the capacity they desired but differentiation between cedants by reinsurers has increased.
  • Non-marine retrocession coverage saw the greatest price increases of up to 35% for loss-hit programs, while loss-hit Florida and U.S.-nationwide property catastrophe and per-risk exposures saw prices rise by up to 25%. However there was a significant range in pricing achieved depending on the quality of the company and its recent performance particularly on the accuracy of previous catastrophe loss estimates.
  • In casualty lines, pro rata treaty commissions typically declined, notwithstanding improvements in the underlying terms and conditions for most classes, although the same dynamic of superior pricing for the better performing companies was seen in casualty lines too.
  • Worsening loss ratios and declining reserve redundancy across a number of long-tail lines point to insurers seeking continued momentum to ensure sustainable returns.
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Willis Re 1st View: A Discerning Market PDF 1.1 MB
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