Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • January 2013
01

January reinsurance renewals 'stable', says Guy Carpenter

Open-access content Thursday 3rd January 2013 — updated 1.22pm, Wednesday 6th May 2020

Annual reinsurance renewals on January 1 took place against a backdrop of stable pricing and ample dedicated reinsurance capital, Guy Carpenter said today.

In The route to profitable growth, the reinsurance broker noted that only loss-affected lines of reinsurance business and specific regions saw price volatility. Overall, its 'Global property reinsurance rate on line index' fell marginally at the renewals, which indicates a global market with the right capacity to meet demand, it explained.

This is the seventh consecutive annual renewal where the index has changed by 10% or less. 'Over this period the reinsurance market has responded well to financial crises, increasing international losses and numerous Atlantic Basin and European wind events,' the report said.

Any upward pressure on property catastrophe pricing for the 2013 renewal generally came as a result of the impact of Superstorm Sandy in the US and other smaller, local events. In non-catastrophe lines, marine and energy business generally saw noticeable rate increases while many others experienced reduction.

Guy Carpenter noted that, while Sandy has pushed global insured losses to more than $50bn in 2012 and was likely to have caused capital levels to stagnate in the fourth quarter of the year, losses were still significantly less than the $120bn seen in 2011. Fully dedicated reinsurance capital had risen to over $190bn at the end of the third quarter, it added.

Lara Mowery, global head of property speciality at the broker, said: 'The January 1, 2013 renewal was very orderly as catastrophes had only local impact. One area of ongoing development was growth in the number of participants and capital provided by non-traditional markets, a critical factor in the marketplace's continuing evolution.

'Even insurers who do not directly utilise non-traditional sources benefit as reinsurers further leverage this capacity,' she added.

The report noted, however, that the reinsurance sector faced continuing challenges from the macroeconomic environment, with pressure from low economic growth worldwide.

There is also evidence that reserves are continuing to diminish and reinsurers will not be able to use them boost their earnings for much longer.

'All of these developments mean that underwriting performance, adaptability and capital management are now manifestly at the centre of any profitable growth strategy,' it added.

This article appeared in our January 2013 issue of The Actuary.
Click here to view this issue
Filed in
01
Topics
Reinsurance

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Risk Actuary - General Insurance

London (Greater)
£60,000 - £85,000
Reference
145934

Project Actuary - Life Insurance

Midlands
£60,000 - £110,000
Reference
145933

Model Validation Actuary

London (Greater)
£60k - £80k
Reference
145932
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ