There has been an observed reduction in appetite and number of reinsurers supporting the South African market, according to the "1st View January reinsurance renewals" report released last week by Gallagher Re, the global reinsurance broker.
Underwriting during the 1 January renewal season has firmed up. There was also a notable reduction in appetite for whole account /aggregate structures, says the report.
In a section on property reinsurance renewals, the report notes that 2021 performance was yet again unfavourable, due to developments in the COVID-19 claims situation as well as unprecedented riots and looting.
From a structural perspective, there have been adjustments to programmes, particularly in relation to proportional treaties.
The biggest drive by reinsurers on property placements was the reduction/removal of non-material damage BI exposures, especially those relating to grid collapse.