Skip to main content
Survey Report

Market unity and discipline: Managing initial COVID-19 challenges

Willis Re 1st View April 2020

Reassuranse|Forsikringsrelaterte verdipapirer
Insurer Solutions|COVID 19 Coronavirus

April 1, 2020

Reinsurers took a measured approach to the April renewals, which saw significant rate increases on loss-affected accounts and more modest rises on loss-free business. The global reinsurance sector smoothly moved to the new working-from-home model following the COVID-19 outbreak and was able to provide uninterrupted service, 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

  • Reinsurers took a measured approach to the April renewals, which saw significant rate increases on loss affected accounts, more modest rises on loss-free business.
  • The largest risk-adjusted property price increases were seen on loss-hit catastrophe treaty contracts, which were up +30% to +50% for Japanese wind exposures.
  • Loss-free treaties saw less dramatic rises, and in a handful of cases renewed as expiring.
  • Capacity provided through Insurance Linked Securities (ILS) decreased slightly, with occasional examples of funds reducing their April 1 offer due to recent investor redemptions.
  • In terms of coverage, many April 1, 2020 programs were fully placed well in advance of the due date and have been completed without any COVID-19 specific exclusionary language. For those programs that were not completed well in advance, several reinsurers sought to impose COVID-19 exclusions which in some cases was achieved but in other cases buyers have been able to provide comfort that their original policies have no exposure to COVID-19 related losses with letters of understanding issued to reinsurers.
Download
Title File Type File Size
Willis Re 1st View April 2020 PDF 1.1 MB
Content inquiries

Chiara Conley
Reinsurance Broker, VP
Investment, Risk & Reinsurance

Contact Us