Rain Doesn’t Dampen 1/1 Optimism at Monte Carlo
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Editor's Note
The annual Rendez-Vous de Septembre -- the unofficial start of both the insurance industry’s fall conference season and 1/1 renewal discussions – got underway in Monte Carlo this week. It’s the largest gathering of reinsurance executives and as always, there was much to talk about: the overall state of the market, the impact of technology, and concerns with emerging risks.
Despite a torrent of rain early in the week, most executives seemed to have a sunny outlook about the upcoming renewals despite reinsurers saying they’re trying to hold the line on rates, terms and conditions while brokers push for reinsurers to increase their risk appetite.
Kathleen Reardon, CEO of Hiscox Re & ILS, describes the 1/1 renewals as a “nuanced situation.”
“I do anticipate reinsurers to maintaining their discipline in rates, terms and conditions. We are still correcting the marketplace post quite a few years of prolonged losses… I do expect some pressure on rates,” she says. Even with some moderation in rates, she says she expects to see a “robust market.”
Robert Wiest, CEO of MS Reinsurance, describes the market as being more balanced, but says, “Reinsurers who haven’t thought about bringing a clear value proposition to the table might struggle in this renewal.”?
Aon’s Reinsurance Solutions EMEA co-CEOs Tomas Novotny described 2023 as a “major reset” between insurers and reinsurers with reinsurers assuming less exposure for more premium. But in 2024, he said clients without losses had seen rate decreases and he expects that momentum to continue. Aon Reinsurance Solutions EMEA co-CEO Alfonso Valera adds, “We would be asking reinsurers to have more skin in the game.”
While a major US hurricane or other significant natural catastrophe loss could put pressure on property catastrophe rates, many expressed concerns about the state of the casualty market.
“Social inflation in the US is…here to stay,” says Laure Forgeron, chief underwriting officer, casualty, for Swiss Re. She notes the US commercial insurance sector losses grew an average of 11% over the last five years, reaching $143 billion in 2023. Those trends impact not just the US, but all US exposure around the world, as well as having an accelerating impact on emerging risks by boosting the likelihood of potential litigation .?
Aspen's Reinsurance CUO, John Welch, says the company is poised to continue to grow “across the board” in 2025 and that the company’s new Pando Re sidecar is giving Aspen a “competitive advantage.”
Other highlights from the conference include Adam Podlaha, Head of Impact Forecasting for Aon, who discusses the 2024 hurricane season's calm start, upcoming forecasts, and climate impacts and Bill Pieroni, CEO of ACORD, who discusses digital maturity, tech spend, and AI's future impact ; and Michael Steel, General Manager-Insurance Solutions at Moody’s, addressing managing secondary perils, and leveraging new technologies to enhance data quality and workflow efficiencies.
Please visit our Monte Carlo Hub for more coverage of the event, and stay tuned as additional video interview will be posted in the coming days.
As always, thanks for watching, listening and reading!
Meg Green, Senior Editor - Multimedia, Insurance Insider
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