Re Discipline Overrated, Broker Contends

Reinsurers have not been especially disciplined, and they in fact prolonged a soft insurance market that should have ended a year ago, a leading reinsurance broker says.

Industry chief executive officers regularly speak on earnings conference calls about the comparative discipline of reinsurers opposed to primary insurers, according to George Venuto, executive vice president of Willis Re in Philadelphia, addressing a group of actuaries during the opening session of the Casualty Actuaries in Reinsurance Seminar here.

“I actually think it’s a bit of an overstatement,” he said, noting that by giving more capacity to some existing primary insurance carriers last year, while also providing capacity for new players, reinsurers extended the soft market.