X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
The biggest news in the reinsurance marketplace over the past 12 months has been the influx of an estimated $50 billion in new capital, including more than $35 billion from nontraditional sources such as hedge funds and pension funds. As a result, traditional reinsurers have begun to take “robust defensive measures,” says Willis Re.

Despite the $30 billion impact of Superstorm Sandy, Willis Re says in its current “1st View” market report that reinsurers are offering price reductions in nearly all global territories. Property rates for catastrophe loss-free are down 20 percent across the U.S., including a 25 percent drop in hurricane-prone Florida. Reinsurers are broadening coverage through multi-year agreements, extended-hours clauses and additional reinstatements.

Brokers and buyers are understandably cheering the impact of the capital infusion. “For brokers who spend their life thinking about how they can service their clients better, it’s fantastic,” says Bryon Ehrhart, chairman of Aon Benfield Analytics and of Aon Benfield’s Investment Banking group. “We’ve been challenged to find low-cost catastrophe capacity since Hurricane Andrew.”

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

Dig Deeper

 

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.