In this article from The Insurer, Guy Carpenter’s Lara Mowery, Global Head of Distribution, indicates that the difficult renewal season seen at January 1, 2023, presents opportunities for reinsurers to re-evaluate their own products to ensure they fulfill market needs. This is the second article The Insurer has published featuring leadership insights from the Bermuda Risk Summit roundtable. (Click here to see the earlier article.)
Lara explains how the January 1 renewals saw reinsurers push through big price increases and overhaul terms and conditions. The average attachment point in Guy Carpenter’s North American catastrophe portfolio went up 60% at January 1, which she described as “a generational shift.”
“Now clients have to take that away, assess what they were able to buy, what it costs and what they think the trajectory of the market is going to be going forward,” Lara explained. “Then they have to go back and say, ‘Are we offering the right product on the front end? What do our attachment points need to be? What does our pricing need to be?’ ”
“And then you get the primary changes starting to filter through, which feeds the entire cycle,” she continued. “But those primary changes have, in a lot of cases, not taken place to the extent needed to support what reinsurers need to make those numbers.”