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Daily Insurance Industry News
Wednesday 20th of September 2017
February 13, 2012

January 2012 renewals reveal shift in industry behavior

by Gill Montia

Story link: January 2012 renewals reveal shift in industry behavior

January 1st 2012 renewals saw a shift in industry behavior as both insurers and reinsurers implemented more sophisticated, customised approaches to risk assessment and mitigation, according to Guy Carpenter.

In its 2012 global reinsurance outlook report, the firm notes that reinsurers were in a position to undertake a major review of pricing and underwriting, leading to significant market fragmentation and increased market volatility at January 1st.

The re/insurance intermediary also notes there were wide-ranging rate movements at national, regional and even local levels, depending on loss experience and exposure perceptions.

The broader reinsurance market experienced mixed renewals and rate movements for casualty lines continued to be subdued.

Most other lines also saw moderate price changes, with increases and decreases in the low single digits.

The study goes on to discuss the ten major themes expected to dominate the industry in 2012, from aggregate covers used to protect against severe shock losses and horizontal coverage, to the internationalisation of losses.

Guy Carpenter’s president and chief executive officer, Alex Moczarski, comments: “The complex January 1, 2012, renewals were a culmination of a difficult twelve months, with the expectation of another challenging year ahead.”

He adds: “However, for companies equipped with the proper tools and insights, challenges can become opportunities.”

 

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