Research

Willis Re 1st View January 2018: Extreme weather — calm market

January 2, 2018
| Australia, Canada, China +12 more
  • Colombia
  • Democratic People's Republic of Korea
  • South Korea
  • Netherlands
  • Philippines
  • Spain
  • Switzerland
  • Taiwan
  • Turkey
  • United Kingdom
  • United States
  • Venezuela
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 from the report

Aerial view of damage to bridge
  • With recent catastrophe loss estimates in the region of US$136 billion, 2017 is proving to be one of the worst loss years on record for the global (re)insurance market.
  • Catastrophe losses have stopped a further downward movement in risk adjusted rates in most markets and classes.
  • The continued supply of capital has helped curtail widespread increases in risk adjusted rates on loss free portfolios.
  • Pricing across global property catastrophe and risk programs is seeing average adjusted increases of 0% to +7.5% with a few outliers either side of this range.
  • Evolving cyber threats are a major concern for the industry in 2018. Recognition of silent cyber risk continues to grow in the market with reinsurers trying to assess potential aggregation levels.
  • Merger and acquisition transaction volume in the global insurance sector finished 2017 on a par with 2016’s US$49 billion.
  • The insurance-linked securities market showed resilience during the catastrophe losses in the second half of 2017, with capacity to grow to US$75 billion in 2017.

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