At the Summer 2022 gathering of the popular Reinsurance Practice Group, we received a "Stateside" roundup from our kind sponsors, Freeborn & Peters LLP, who briefed the group on developments in the insurance market and the courts on COVID-19 claims and commented that very few of these claims had resulted in policy liability attaching due to the lack of perceived "property damage", although there have been a large number of event cancellation type losses.
After a top quality cooked breakfast, the Practice Group then discussed the trends from the 1/1 and 1/4 renewals, amongst other things. Participants commented about the steady increase in rates and hardening market and how this had resulted in some difficult conversations with clients. There was also mention of closer attention to T&C's and some renewals starting earlier but actually finishing later than normal - perhaps an indication of the times.
It was clear from the roundtable discussion that some classes of business are also causing anxiety in the reinsurance market, such as cyber and those risks relating to climate change. The Life & Health classes in the USA are equally presenting problems due to COVID-19, but the group felt this was not really reflected here, although motor had caused some stresses.
The Group discussed the continued growth in the legacy market and the decision by companies to continue to evaluate and close certain books. Amongst other things raised was the evolution in underwriting ideology, with a need to focus on underwriting sustainable risks and being conscious of ESG generally. Members of the Group raised the worry about the availability of talent in the reinsurance community the need to focus on building a sustainable talent pool.
If you're not part of this quarterly cross market Reinsurance Group and want to take part at our next gathering on October 6th - do reach us at firstname.lastname@example.org