In this interview with The Insurer, Charles Whitmore, President, Global Accounts, Guy Carpenter, discusses how buyers can look forward to a healthy reinsurance market while carriers will be focusing on pricing priorities, and terms and conditions.
While demand for reinsurance is reasonably constant year on year, there are certain areas that will see increased buyer appetite at renewals–underperforming classes that have suffered surprise losses, and secondary perils such as hail, flood and wildfire that are causing large retained losses to insurers and surprise losses to reinsurers.
One of the major themes going forward will be around providing coverage for perils that are under-insured and new risks not currently covered–particularly pandemic risks and climate and weather volatility.
Guy Carpenter is investing heavily in its ability to react to these types of risks through the creation of public-private partnerships to close the protection gap and this will be an area of special focus for us going forward.
Another area that will continue to be very challenged at January 1 renewals and beyond is the cyber market–due in large part to the ongoing frequency and severity of ransomware attacks.