June 2019/3

The withdrawal of US domestic capacity for big-ticket property risks continues to bear fruit for the London market.

Despite early hopes of sizeable rate rises, reinsurers are frustrated that many accounts will renew with as-before terms.

Markets behave in brutal and slightly crazy ways that don’t always best serve the end consumer. They always undershoot on the downside and then overshoot on the upside – sometimes hugely and irrationally so.

New deals have brought total year-to-date ILS volumes to $2.9bn, pointing to a shrinking of the market.