Middle East: Reinsurers push back in 1 July renewals

Source: Middle East Insurance Review | Jul 2017

Property reinsurance pricing in the 1 July renewal season in the Middle East appears to be at the bottom of the cycle, according to the latest 1st View renewals report from Willis Re.

There is significant pushback from reinsurers, the report said.

Willis Re noted that there is greater focus on the underlying rate adequacy of the portfolio than ever before. This is being benchmarked against the market by an increased number of reinsurers.

Reinsurers are pushing retentions higher and commissions to new lows to protect against adverse results.

The reinsurer also said that with reinsurers willing to walk away from distressed business, discipline among the larger players is holding.

Furthermore, the Abu Dhabi National Oil Company (ADNOC) loss has been a driver for an increase in pricing within the regional retro renewals. There was a major fire at a refinery at ADNOC’s complex in Ruwais, about 250 km west of Abu Dhabi, in January. The fire caused no injuries to employees. It led to significant disruption to operations in the sector. M

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