Issued three times a year, this publication delivers the very first view on current market conditions within the reinsurance industry at the key renewal seasons: 1 January, 1 April and 1 July.

1 July 2022 Key Findings for the Reinsurance Market:

  • Economic factors sustained the reinsurance hardening trend during the 1 July renewals.
  • Reinsurers have applied high single-digit or low double-digit loadings to account for inflation, in addition to loadings for movements in exposure.
  • Nearly all cedants were able to secure cover they need.
  • The overall reduction in natural catastrophe capacity continued as reinsurers move gradually away from low level layers, differentiated by country and region.
  • Reinsurers are closely analysing cedants’ actions in response to inflation, and applying carefully calculated loadings to relevant treaties.
  • The war in Ukraine has increased attention to cyber and war contract provisions.
  • Long tail casualty placements, particularly those with strong primary rate movement, remained largely popular with reinsurers, but the debate around ceding commissions was greater than was the case in the recent renewals, as reinsurers’ concerns grow over higher rates of inflation and its effect on claim awards.
  • Higher risk prices for ILS risk transfer have begun to attract net new capital, but this has not led to ILS-market softening.