Jul 02, 2021
Willis Re comments on 1 June and July renewals
Willis Re portrayed the 1 June and July 2021 renewals as moderating somewhat compared to last year with reinsurers "keen to maintain the pricing momentum that they had achieved at the 1.1. and 1.4 renewals and to an extent they were successful, though there are increasing signs of capacity supply outweighing demand."
In respect of US property catastrophe renewals, the trends seen (compared to 2020) were:
Risk loss free % change |
Risk loss hit % change |
Catastrophe loss free % change |
Catastrophe loss hit % change |
|
Florida |
-5% to +5% (2020: +5% to +10%) |
+5% to +15% (2020: +5% to +20%) |
-5% to +5% (2020: +20% to +30%) |
+10% to +30% (2020: +25% to +35%) |
Nationwide |
+2.5% to +15% (2020: +5% to +20%) |
+10% to +20% (2020: +10% to +30%) |
0% to +10% (2020: +5% to +20%) |
+10% to +25% (2020: +20% to +30%) |
Concerning Florida business, the report states "The desire to increase top line revenue has not yet undermined underwriting discipline and classes of business and portfolios with poor results attracted much less capacity –this was particularly notable in the Florida renewals."
With their chart as follows:
The US casualty renewals exhibited wide variations depending upon the class of business as can be seen in the table below:
Casualty |
XL – no loss emergence, % change |
XL – no loss emergence, % change |
USA - general third party liability |
0% to +10% |
+5% to +25% |
USA – healthcare |
0% to +10% |
+15% to +25% |
USA - motor liability |
0% to +7.5% |
+5% to +15% |
USA – professional liability |
0% to +5% |
+5% to +20% |
Global – cyber |
+15% to +40% |
+25% to +40% |
The Willis Re Press Release is available by clicking here.
The full report "Emerging Equilibrium: Willis Re 1st View " is available by clicking here.