Reinsurers continued to provide ample casualty reinsurance capacity through the recent January 2025 renewal season – despite concerns about adverse reserve development — however, an availability crisis could be looming, AM Best cautions.
In a new report, AM Best points to rising litigation costs, higher jury awards and a broader interpretation of policy coverage – driven particularly by U.S. social inflation trends – which have placed substantial pressure on many global reinsurers to reassess pricing models and reserve adequacy.
Indeed, in 2024, many global reinsurers reported reserve strengthening efforts to combat adve