As you can see in the image above (click the image to check out the complete, interactive study outcomes), an amazing 89% of respondents think European property catastrophe reinsurance dangers will experience rate boosts at the January 2022 renewals.
Nearly 26% of respondents hope to see 10% or higher rate increases for catastrophe reinsurance renewals in Europe, with another 34% hoping for rate increases of 5% to 10%.
United States residential or commercial property disaster risks are also anticipated to see boosts, with 55% of respondents saying they anticipate a minimum of 5% rate increases there.
47% of respondents forecast rate boosts of higher than 5% in home disaster retrocession renewals, with another nearly 39% saying retro renewals should see rate increases of approximately 5%.
Even in disaster regions that have not seen such substantial loss activity through 2021, such as Asia, Latin America and Australasia, most of our survey participants feel additional firming is needed.
Cyber reinsurance is seen as the single line of organization in need of the greatest cost increases, with more than 50% of survey participants requiring 10% or higher rate enhancements at the January 2022 reinsurance renewals.
With the reinsurance renewal process running particularly late, it remains to be seen who holds the power this year.
Larger, international reinsurers will likely moderate pricing rather and take benefit of better rates to continue their expansion, while insurance-linked securities (ILS) capital is expected to be a little dented at 1/1 after recent loss activity.
There appears some confidence that rate gains will be broadly achieved however, as evidenced in our survey outcomes. Whether they are as significant as many are hoping for, remains to be seen.
The complete outcomes of our 2nd international reinsurance market study supply a helpful test of the temperature level of the market, offering insight on market sentiment and expectations as we move towards the January 2022 reinsurance renewal season.
We hope our readers and other interested parties discover the outcomes enlightening and beneficial in making their strategic decisions for the renewal season ahead.
The complete results of our most current survey are freely offered from today and were delighted to discuss them with any market individuals. Were interested to hear your thoughts.
Well also be evaluating the complete reinsurance market research results over the coming weeks on both Reinsurance News and Artemis.
Analyse the results of our global reinsurance market survey here.
Global reinsurance market participants are anticipating broad firming at the upcoming January 2022 renewal season, with retrocession and home catastrophe risks viewed as locations in requirement of price improvements.This is according to our most current worldwide reinsurance market survey, carried out together with sibling publication Reinsurance News, which analysed market opinion at a crucial season.
We reached out to our combined readership of more than 200,000 per month through September and into October, to get a sense for how the sector is feeling ahead of the upcoming reinsurance renewals.
Our H2 2021 reinsurance market research is based on reactions from hundreds of recognizable market participants, lots of in the C-Suite and more than 70% of whom make or offer input into reinsurance purchasing choices.
The full results are available online free of charge and you can evaluate the information from reactions here.
We asked our readers for their views on rates for much of the significant reinsurance industries and its clear the market is preparing for rate boosts throughout retrocession and property catastrophe dangers.