In almost all regions and programmes, reinsurance renewal talks are shaped around discussions on communicable diseases and cyber risk. Exemption clauses related to these have become the norm in reinsurance agreements, according to Ms Gunes Karakoyunlu, Milli Re's domestic reinsurance admissions manager.
She added that although Turkey's insurance market has been minimally affected by the COVID-19 pandemic, “we can state that contagious diseases and cyber risk exemption clauses are added to the reinsurance agreements in almost all branches in parallel with actions taken globally in 2021 renewals”, Insurance Gazette reported.
Ms Karakoyunlu said that 1 January reinsurance negotiations, which had been predicted would be quite difficult for reinsurance buyers, have instead not resulted in the expected 'hard market'. This is because of new reinsurance capacity transferred to the sector by new players who had anticipated a high increase in prices and because of additional capital injected by existing players.