A spate of disasters early this year, the ongoing oil spill in the Gulf of Mexico and predictions of an active hurricane season have reinsurers on edge. But with capacity still relatively high, the U.S. reinsurance market remains soft and is well capitalized for the challenges ahead, according to experts in the field.
“The lament is everywhere, whether you talk to brokers or carriers–there's too much capacity,” Hank Watkins, president of Lloyd's America, told National Underwriter. And as far as any indications of a hardening in the market, “there hasn't been a cataclysmic event that would suggest that coming any time soon,” he added.
“The industry is pretty well capitalized,” according to Sean McGovern, director for North America and general counsel at Lloyd's, who observed that reserves are strong and investments are better than expected.
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