Published on 08 March 2024
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US Property Market Update Q1 2024
Published on 08 March 2024
The treaty reinsurance market at 1.1.24 has been far more orderly than in the prior year.
All in all, clients with excellent loss experience should feel a lot more optimistic going into their 2024 renewals.
The catastrophic events of the past few years have presented many challenges to both the insurance and the reinsurance sectors along with the consequences of the broader economic impact on clients. We share in our clients frustrations at having been impacted by year-on-year compound rate increases for six years.
The treaty reinsurance market at 1.1.24 has been far more orderly than in the prior year, encouraged by a benign 2023 USA hurricane season and the prospect of much improved annual underwriting results for both insurers’ and reinsurers’. This is despite global cat insured property losses likely to exceed USD100 billion in 2023, with this amount being largely driven by severe convective storm losses in the USA, which are currently estimated to be totaling around USD60Bn.
In recent weeks, there have been some encouraging signs from London property insurers with many advising that they have increased capacity for 2024, both in terms of overall aggregate and in a number of instances, increased line size for 2024 renewals. Some of the additional capacity will also come from internal carrier capacity redeployment from less profitable lines of business or where they have closed down their trading divisions, as has been the case in a few instances where syndicates are no longer trading in treaty reinsurance.
Initial indicators are that with inflation easing, property valuation increases will be moderated for 2024 renewals. An improvement in capital to the property sector whether externally raised or internally redeployed will certainly assist in our 2024 renewal negotiations.
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Dan York
Dan joined Alesco London in 2003 after graduating from the University of Southampton.
He is an Account Executive to some of Alesco’s major national and global insurance accounts and is responsible for the placement and servicing of their property insurance into the London, European and Bermuda insurance markets.
Dan's main specialty is on clients with locations in major critical catastrophe exposed areas and perceived high risk. This involves a number of accounts with significant wind and earthquake exposure, primarily in Florida, California, Texas, the Carolinas and the Gulf coast.
