Renewals at April 1, 2013, were stable, according to a briefing by Guy Carpenter & Company LLC, a global risk and reinsurance specialist. With traditional and alternative capital sources converging, the marketplace is changing, according to Guy Carpenter, as non-traditional capacity now comprises an estimated 14 percent of global property catastrophe limit.
“The April 1 reinsurance renewal saw pricing stabilize in most regions as insurers benefited from an environment of dynamic capital growth,” said David Flandro, global head of business intelligence for Guy Carpenter. “Much of this growth emanated from non-traditional sources, confirming that the convergence between traditional reinsurance and capital market solutions has now occurred.”
Insurers benefited from this environment at April 1, a significant renewal date for the Asia Pacific region, and reinsurance pricing for that region was generally stable or fell marginally this year compared to 2011, when the Tohoku earthquake in Japan and Thailand flooding occurred, though rates increased in Korea. Non-traditional capacity in the United States is having a significant impact on property catastrophe business, Guy Carpenter said; and to date, pricing for traditional reinsurance has decreased on similar coverages from the January 1 renewal.
Highlights from the briefing:
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