Jannah Theme License is not validated, Go to the theme options page to validate the license, You need a single license for each domain name.
Business

How to achieve strong results in property and casualty reinsurance renewals

“Corrective action,” Morley said, refers to cumulative charge increases achieved by property and casualty insurers, particularly in the commercial motor vehicle, general liability, umbrella and financial sectors, as well as their risk appetite. , also mentions underwriters’ strategic changes to indemnification terms. limits and retention controls, and risk management requirements;

According to Morley, these actions “laid the foundation for stronger reinsurer engagement” and have played a role in producing more favorable loss developments.

Reflecting on market conditions in mid-2022, Morey said, “The impact of underwriting activity, combined with the impact of lower billing frequency, delivered a relatively positive result today.” “Portfolio performance and growth plans make many lines attractive to reinsurers whose risk appetite is moving away from specific his CAT segments and geographies.”

In August 2022, AM Best released a report titled “Global Reinsurance: Improving More Stable Outcomes as the Transition from Property Catastrophe Risk Takes Place”. This report details how many global reinsurers have changed their business mix from property catastrophe risk to casualty and specialized primary lines. , is considered more attractive because it produces a more stable and predictable loss pattern.

However, as seen in major events such as the COVID-19 pandemic and the invasion of Ukraine, casualty and specialty lines are not immune to cumulative risk. As Morey noted, there are also concerns about economic and social inflation.

Read the following: Large reinsurers shy away from natural catastrophe risks

According to Guy Carpenter, property and casualty insurers and reinsurers operating in this volatile environment will focus on three things. We focus first on underwriting strategy and portfolio management, but pricing and risk selection remain important considerations for both insurers and reinsurers.

When evaluating cedants at renewal, reinsurers want a clear understanding of the insurer’s underwriting approach and the re-underwriting strategy in place. We are also looking to quantify the impact of policy wording changes, use of risk management strategies, deployment limits, and general risk appetite.

We also look at the dynamics of losses, looking at both economic and social inflation and paying attention to changes in frequency and severity. There have been some concerns about the continued loss development over the last few years. Morey explained that the market has seen “a certain amount of loss development that exceeds initial expectations” in some older years at renewals of property and casualty reinsurance in mid-2022. This came on top of “concerns about increased competition and the impact of inflation.”

Finally, reinsurers focus on reserves, allowing them to cope with emerging and emerging risks and loss inflation.

read more: Guy Carpenter Announces Change in GC Access Leadership in North America

“Strategic trade ties will continue to play an important role as the interest rate environment, Russia-Ukraine tensions and subdued inflation concerns continue to be at the forefront of renewal negotiations heading into January 1,” Morey said. I anticipate it,” he said. “Cedents and reinsurers will continue to look to underwriting approaches, loss trends and reserves to protect against dynamic market forces.”

Guy Carpenter Leader says P&C capacity remains ample as reinsurers remain stable and responsive to individual customer demands, with year-end reinsurance renewal cycle in order said he expected to. Following a similar trend in 2021, Morley expects some pricing pressure depending on its business and capital requirements.

“Cedents who actively emphasize limit management, portfolio actions and policy changes will be in a strong position to achieve successful renewal outcomes,” emphasized Morley. “As reinsurers increasingly focus on the moderate interest rate environment in many areas and strive to maintain a closed view of actual and expected loss developments, early and detailed strategic Communication is especially important.”

How to achieve strong results in property and casualty reinsurance renewals

Source link How to achieve strong results in property and casualty reinsurance renewals

Related Articles

Back to top button