In this interview with The Insurer, Guy Carpenter’s John Trace, Global Chief Broking Officer and CEO of North America, said that clients are broadly seeking risk-adjusted price reductions for catastrophe risk.
He described how reinsurers are also being asked to develop cost-effective, relevant products to address retained losses from frequency catastrophe events and to participate “broadly and consistently” across each client’s portfolio of treaties. In addition, cedants are seeking the removal of any remaining coverage non-concurrencies. John also mentioned that he expects more clients to seek cat aggregate protection in 2026, after several new programs were placed this year.
Regarding the US casualty market, John said that reinsurers have responded positively to cedant’s “hard work” around data, limits management, claims management and mitigation, along with their push for rate increases and focus on providing the right product for each risk.