Analysis

The aviation market took what is believed to be its largest-ever loss recently and court actions over Ukraine claims are ongoing, all contributing to a hard war market as all-risk renewals remain softer.

Some multi-national cedants are using US addresses to source cover from US carriers, risking issues in the event of claims, amid a desperation for growth on both sides of the Atlantic.

The hurricane could prove a key test of the London market’s efforts to reduce catastrophe exposure, but will local carriers be able to lean into the hardening market?

Inflation, heightened cat activity and years of poor reinsurance returns are fuelling demands for wholesale change in the European market.

Many policyholders are likely to receive larger payouts following the judgement, but a worst-case scenario has been averted.

Cedants may find past behaviour coming back to haunt them, while brokers should be preparing in depth to achieve simplicity.

Reinsurers are demanding price increases and higher retentions as brokers warn cedants to be ‘realistic’.

Plus the latest executive moves and all the top stories of the week.

In a canvass of London market professionals, most placed their “gut feel” industry loss estimate for Hurricane Ian at $40bn-$50bn.

With significantly lower retentions, AIG, Assurant and Allstate are more likely to pass the cost of the hurricane onward to their reinsurers.

The latest statistics from the IUA show that the Lloyd’s market perhaps has not conceded as much ground as initially thought.

Sister title Trading Risk ran some scenarios applying market share figures and loss ranges to paint a picture of how the quantum of trapped capital could evolve.