Prior to the April 1 reinsurance renewals in Korea, expectations for pricing increases were quite high. While Korea had not experienced any impactful losses in recent years, a mid-sized typhoon, heavy rain losses and several large single losses occurred in 2020, influencing the pre-renewal expectations. However, capacity was more than sufficient and certain markets were proactive as they sought potential cedents. Renewal Highlights:
- There was a clear movement of capacity from proportional to non-proportional and from risk to event.
- Following large single losses, many clients refrained from increasing their retentions and searched for more proportional capacity.
- Cedents increased deductibles or reduced coverages to mitigate price increases.
- Leaders were changed on various programs.
- Communicable disease exclusions and silent cyber exclusions were implemented in almost all programs without exception