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January 1 Placement Recap

Renewal Commentary

  • 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.

Renewal Price Change
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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