Property Renewal Themes at January 1, 2021

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Pricing for the property sector generally settled at the lower end of expected increases outside of more constrained segments at January 1. Where placements were loss impacted, particularly in cases where retentions were perceived to be too low, reinsurers held firmer on pricing or structure adjustments. Global property renewal themes included:

  • Ample capacity was available from incumbents and new entrants to the property reinsurance market during the fourth quarter of 2020.
  • Limit demand was generally stable with a few pockets of increases.
  • On non-loss impacted programs, risk-adjusted pricing was up mid-single digits to low teens in the United States; while in EMEA and the Asia-Pacific region, risk-adjusted pricing increased by low single digits on average.
  • Known global large losses in 2020 were higher than average, excluding COVID-19, driven by frequency of small and mid-sized events.
  • Based on current market views, loss implications from COVID-19 were not as disruptive as feared earlier in the year.
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