This year’s January reinsurance renewals were described by brokers as “stable,” “predictable,” “orderly,” “calmer,” “disciplined,” with “increased appetites” and a return to supply/demand balance. What a difference in tone from last year’s grueling January renewals.
“In a marked change on a year ago, the supply of property catastrophe reinsurance capacity at the January 1 renewal was more than adequate to meet demand, resulting in a competitive environment for peak perils and upper layers,” according to Aon in a market report titled “Reinsurance Market Dynamics – January 2024.”
“This year, property supply and demand has snapped back into balance, with returns for the first three quarters of 2023 exceeding reinsurers’ increased cost of capital,” according to Gallagher Re’s 1st View