- Across common mid-year renewal dates, Holborn tracks metrics relative to price change, market capacity, buying patterns, and the most aggressive reinsurers.
- At January 1, major worldwide markets showed increased capacity across all placement types, with domestic U.S. reinsurers figuring most prominently.
- Risk-adjusted pricing reduced more than 10% on average in core catastrophe placements with other treaty types reducing in the high single digits.
- In general, reinsurers continued the trend of accepting more risk for less margin with innovation in coverage design and improved terms and conditions offering significant value to ceding companies.
Improving Terms and Conditions
- Consistent with 2015 movements, reinsurers were more willing to give in terms and conditions than pure rate reductions.
- Coverage improvements included:
- Clarification (e.g., for ice dam sub-peril) and expansion in winter storm coverage language
- Expansion in “hours” clauses
- Improved reinstatement provisions
Download the presentation here: 1.1.16 Placements Recap EXTERNAL