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Renewal Resource Center

Renewal 1-1-24

January 1, 2024 Renewal

A responsive reinsurance market has materialized at January 1, 2024 renewals, reflecting ample capacity and a commercial approach to trading partnerships, albeit with continued underwriting rigor.

Reinsurance capacity increased through year end, driven by rebounding capital in the sector and healthy reinsurer returns, estimated to be near 20% for 2023. Guy Carpenter, in partnership with AM Best, estimates total dedicated reinsurance capital increased by 10% compared to year-end 2022. Differing from past years following a major market correction, capital growth was driven by existing reinsurers with no start-up class of 2023.

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Dean Klisura

“The January 1 market reflected more balanced trading conditions providing cedents improved opportunities to achieve their objectives while maintaining key reinsurer relationships. Technical discussions were essential to reinsurers’ increasing appetite and capacity allocations.”

Dean Klisura, President & CEO

  • David Priebe

    “A market dynamic is emerging where pricing remains firm, but capital is plentiful. Further concurrency is being achieved in certain areas, providing an important level of consistency in coverage.”

    David Priebe, Chairman
  • Lara Mowery

    “While a 2023 startup class did not emerge, existing participants demonstrated access to capital where conditions support increased participations. This market’s ability to provide solutions through shifting risk perspectives played out across classes and regions.”

    Lara Mowery, Global Head of Distribution
  • John Trace

    “The reinsurance sector is entering 2024 from a position of strength. Materially improved underwriting conditions and the tailwind from higher nominal investment yields are generating additional capital and increasing market competition.”

    John Trace, CEO, North America
  • James Boyce

    “At January 1, more than sufficient supply to meet demand for property retrocession renewals led to improved buying conditions, particularly at more remote levels. Retention levels broadly held despite growth in underlying portfolios, and greater consistency in terms and conditions was achieved."

    James Boyce, CEO of Global Specialties
  • Laurent Rousseau

    “A healthy, functioning reinsurance market is critical to the global economy. The sector’s value to the world financial structure is in its ability to create equilibrium and opportunity.”

    Laurent Rousseau, CEO, EMEA and Global Capital Solutions
  • Paul Moody

    “Quality of data was central to market discussions at the January reinsurance renewal. Outcomes were shaped by technical, data-driven insights, reflective of reinsurers’ focus on a more in-depth understanding of portfolio dynamics.”

    Paul Moody, CEO, UK

  • “In Asia Pacific, the January rate increase was comparatively lower than in other parts of the world, largely because the region provides diversification via its wide range of territories and climates, and loss activity was lower than average. Also, Asia is in a much lighter inflationary environment than Europe or the US.”

    Tony Gallagher, CEO, Asia Pacific

For Media Inquiry

  • Jennifer Ainslie, Head of EMEA Marketing & Communications

    +44.20.7357.2058

  • Paul Caricone, SVP, Marketing Intelligence

    +1.646.245.6867

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July 2023 renewals

The broader market trends seen at January 1, 2023 continued at mid-year renewals, but with improved timing and concurrence around terms and conditions. While property pricing saw continued risk-adjusted rate increases in many segments, the average change moderated from January 1.

Global property catastrophe reinsurance risk-adjusted rate increases ranged from +10% to +50%, with loss-impacted clients often seeing higher pricing. In the US, property catastrophe reinsurance risk-adjusted rate increases were on average the highest in 17 years, with loss-free accounts generally up +20% to +50%.

The preliminary year-to-date Guy Carpenter US Property Catastrophe Rate on Line Index, an alternative measure of price change that incorporates the impact of structural adjustments and current views of risk on actual dollars paid, increased 35% for January through July renewals. 

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