Volume has been the key driver in property reinsurance business during the 1 January renewal period, says Willis Re which is the reinsurance advisory business of Willis Towers Watson.
In its 1st View report, Willis Re says that cedants with large volumes have managed to achieve increased capacities in some instances.
Other developments in the latest renewal season in the Middle East are:
- Pro rata treaty conditions have remained largely flat. There have been some relaxing of wording restrictions, but the financial terms have largely remained unchanged.
- Loss free excess of loss covers have seen -5% to -7.5% discounts despite initial attempts by the reinsurers to increase prices.
- Loss affected excess of loss covers have seen a risk-adjusted price increase of approximately +5%
The report says that the 1 January property reinsurance season in Turkey had the following features:
- A reversal of historic trend saw the Turkish lira strengthen, prompting higher limit demand for Euro-denominated property excess of loss programmes.
- Increased spend provided some price relief to buyers with overall risk-adjusted movement flat, following two consecutive years of increases.
- Proportional property treaties saw little evidence of increased support despite projected improvement in underlying earthquake rates following implementation of new seismic hazard map.
- The launch of state reinsurer Turk Re introduced significant new proportional capacity to the market.