In this article from The Insurer in concurrence with the 2023 Monte Carlo Rendez-Vous, Vicky Carter, Chairman of Global Capital Solutions, International, indicated that many buyers needed to carry higher retentions this year, while aggregate covers were very difficult to purchase.
“In addition, capacity was targeting higher program levels, which resulted in shortfalls at the lower end of programs,” Vicky said during the CEO Roundtable event at Monte Carlo. “Looking ahead, we will see some buyers increase retention levels and buy less reinsurance, as they look to achieve the most efficient use of capital, and you’ll see others who look to purchase more vertical cover.”
Vicky went on to emphasize the need for creative solutions in the reinsurance market.
“We’ve seen in 2023 a number of losses around the world, many of which were retained losses, she said. “I think you will see a lot more interest in developing innovative solutions at the lower end of programs, whether that comes in the form of structured reinsurance or spread loss covers. There will be a need for more holistic strategies as we move toward January 1 renewals, designed to achieve enhanced capital efficiency and improved capital optimization.”