Broker reports on 2022 reinsurance renewals
The reinsurance renewal season at the beginning of each year is an important bellwether in the underwriting cycle. Many Lloyd’s underwriters would argue that the importance of this year end process has diminished over time, with the round renewals for Far Eastern and regional US programmes in the second quarter of the year at least as important as those a 1 January; while direct and facultative business can and does have renewal dates throughout the year. Nonetheless, there were important renewals for international and US business at 1 January 2022. The reinsurance markets are at something of an inflection point; although industry capital continues to be plentiful, loss activity over the past five years has been elevated, with reinsurers being resolute in their determination to increase prices for almost all lines of business.
Argenta clients were able to hear a leading underwriter talk of his experience in this year’s renewal season in the first of this year’s series of online seminars last week (and any that would like to hear a recording of the session are welcome to speak to their usual contact at Argenta for access details). We have also sent a newsletter on the renewals as at 1 January 2022 to clients this week.
Several brokers issue their own reports on their findings at year end. This year, we have reports from Howdens, Guy Carpenter and Gallagher Re. While it is possible to debate the overall level of increases and also the impact of secondary perils (losses emanating from events such as tornadoes, flood and wildfire rather than the historically more severe events such as typhoon, earthquake and hurricane), there is unanimity from the brokers in terms of the direction of travel of rating levels, up across all lines of business and territories.
Reports from the three brokers are available from the following links