Reinsurance News recently hosted a roundtable discussion at the 66th Rendez-Vous de Septembre in Monte Carlo, bringing together six industry executives to talk about various topics such as market conditions, structural changes, technology, and more.
The event was sponsored by BMS Re and PwC, marking the second roundtable in Monte Carlo and the first since the start of the global pandemic. The executives shared their insights on key issues leading up to the January 1 renewals.
Adam Mullan, Executive Chairman of BMS Re, discussed the market’s current position, noting that dedicated reinsurance capital is expected to increase by 9% in 2024. This growth, along with increased attachment points, has helped mitigate mid-size losses in the property cat market.
However, Mullan pointed out that there is still room for improvement in the casualty sector. He highlighted concerns about adverse development in recent years and the challenges of predicting future trends in this space.
Matthew Britten, a Partner at PwC Bermuda, emphasized the need for reinsurers to rethink their strategies around earnings protection. He expressed doubts about the return to providing such covers, given the positive impact of moving away from them on reinsurers’ results.
Britten also raised concerns about adverse development in the liability and auto lines, questioning whether rate increases have been sufficient to address loss ratios effectively.
Overall, the executives agreed that the market is at a pivotal point, facing downward pressure on rates from clients and challenges in the casualty space. They emphasized the importance of smart capacity deployment, balanced portfolios, and diversification to navigate these uncertainties.
The full discussion from the roundtable will be released in the upcoming weeks, offering more insights from sponsors and participants. Keep an eye out for the 2024 Reinsurance News Monte Carlo Executive Rendezvous Roundtable for a deeper dive into the current state of the reinsurance industry.
