July 1st, 2024 Reinsurance Renewals: Calm, Measured, and Fairly Orderly Market

Calm, measured, and fairly orderly market conditions prevailed on the July 1 reinsurance renewals, on treaty as well as facultative market segments.

The second quarter market conditions characterised by around 4% surge in global capacity, flat renewal terms and underwriting discipline; had sent good signals of a fairly stable July 1st, 2024 renewal season. Behold, the midyear renewal season was just that, a more balanced and calm renewal.

On the facultative segment, there was enough capacity in the market to conclude large corporate placements, even those that had suffered challenges of short placement in the previous year. Reinsurers were keen to increase their line sizes and others opted to participate at lower layers in non-proportional facultative placements. There was also good proportional capacity at the right price for portfolios that have performed well in the past.

On the treaty segment, there was ample capacity for books that have a good performance history as most were oversubscribed. On the contrary, the market seemed to be cautious on deploying capacity on brand new treaties as reinsurers demand a track record before supporting new ventures.

In terms of pricing, the market was fluid following 1.1 and 1.4. The market was “fairly stable” noticing flat renewals and in some cases price discounts for good performing accounts. The reinsurers seem to be comfortable with the current pricing levels, and importantly, with their need for premium growth.

The end game for the July 1st, 2024; market conditions enabled buyers to get their programmes placed at acceptable pricing. But there was minimal movement around some of the reinsurer panels, reflecting reinsurers different opinions of how the market is developing.

Simba Makwembere is the Managing Director at Maksure Risk Solutions.

Contact our teams on Tel +27 11 805 0086 or Email: info@maksure.co.za.

About Maksure Risk Solutions

Maksure Risk Solutions is an Afro-Global independent specialist insurance and reinsurance broker with business footprint in Africa, Asia, East & Western Europe, South America and the Caribbean. We provide innovative and tailor-made risk solutions in Insurance and Reinsurance as well as Risk Financing and Actuarial Consulting geared towards capital management and strengthening our client’s balance sheet. Maksure is also one of the major players in Captive Management (Establishment & Management) in South Africa, Mauritius, Bermuda and various other jurisdictions. We have access into the Lloyds of London with a deep understanding of African markets. Our global nature ensures that our clients access quality capacity as well as some of the world’s latest thinking and solutions.