January 1 reinsurance renewals have been described as challenging, and in some cases frustrating, in analyses provided by two intermediaries.
Guy Carpenter describes January renewals as “one of the most challenging reinsurance markets the sector has experienced, as reinsurers and cedents work to establish a new market equilibrium.”
Meanwhile, Gallagher Re suggests the reinsurance market faced a very late, complex, and often frustrating renewal. “As anticipated before negotiations commenced, the two areas of most constraint were peak-zone US property catastrophe capacity and coverage for strikes, riots and civil commotion, and war,” says Gallagher Re in 1st View: Market Turns (January 2023).
In most other lines and regions, reinsurance buyers were generally able to secure desired capacity, though at higher costs and often with changed structures with increased attachment points and a higher floor for minimum rates on line, Gallagher Re’s report suggests.