April 2022 Key Findings for the Reinsurance Market:
- Orderly renewal - Capacity was largely sufficient in most classes but some constraints in certain speciality lines and retrocession classes. Larger reinsurers continued with their successful package underwriting approach.
- Pricing movement - In line with 1.1.2022, modest single digit increases on property catastrophe covers supported by the significant increases in recent years on Japanese windstorm catastrophe rates following major losses and for most portfolios underlying stable or increasing original rates.
- Inflation - Very much a key issue on all lines of business. Pressure on buyers to verify the actions they are taking in their original underwriting to manage inflationary pressures so reinsurers could reflect in their pricing models.
- Ukraine/Russia - Tragic Ukraine situation starting to have some modest impact in terms of coverage but outside some speciality lines of business and some speciality retrocession covers impact not seen at 1.4.2022 other than a tightening of sanctions clauses with LMA3100 being universally adopted.
- Catastrophe capacity - Some adjustment in reinsurers positions with a few looking to reduce or redeploy their capacity at higher attaching layers offset to a degree by other reinsurers looking to expand their catastrophe writings to build out their portfolios.