Softening market a key trend of 2008 - report
–04 January 2008
Willis has released its annual reinsurance renewals report for January 2008. Entitled “Settling or Sinking?” it highlights a softening market as the major trends witnessed in this year’s renewals.
The 2008 renewal season is also one of almost unprecedented lateness, as insurers try to reconcile reinsurer offerings with their own financial objectives, according to the report. The industry is showing signs of reverting to the historic pattern of feast or famine.
The report focuses on rate movements across numerous territories and includes detailed analysis from our product line experts. Key findings of the report include rate reductions in almost every line of business, and record profits and the quest for diversification has led to severe competition amongst reinsurers. It also reports the sub-prime crisis has had a limited effect on reinsurers’ appetite and finds capital markets interest in supporting insurance risks remains unabated, with some USD6.4 billion of cat bonds being issued this year
Peter Hearn, CEO at Willis Re, said: “Our clients are confronted by an array of challenges in every country and line of business and we hope this report will help them to formulate a more comprehensive picture of the key issues facing the market this renewal season and in looking forward to the rest of 2008.“
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