Willis Re 1st View

ICMIF Supporting Member Willis Re has published the July edition of its 1st View Report.

In the report there is an update on loss activity across both the International and North American markets and the June 1 and July 1 reinsurance renewals. The report demonstrates that some buyers with loss-free programs, even in areas of peak exposure, have managed to obtain risk-adjusted rate reductions.

The report goes on to highlight that a targeted underwriting approach taken by most reinsurers has been welcomed by cedents. They have seen their efforts to manage, analyze and, in some cases, de-risk their portfolio(s) rewarded in differential pricing. This approach does not, however, support a generalized market hardening to the frustration of some reinsurers.

Other topics in the report include:

  • Major changes in some vendor catastrophe models over the past 12 months and regulatory pressures which have driven a continued move towards more customized catastrophe modelling, including the use of multiple models and client-specific applications.
  • Mergers and acquisitions among traditional reinsurers are continuing. There has been a marked increase in the flow of capital into non-traditional vehicles.
  • For all reinsurers this is a demanding time and traditional reinsurers face the challenge of earning an acceptable return on their capital. However, despite their own difficulties, most reinsurers remain focused on providing their clients with differentiated support.
Date posted: July 19, 2012
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