Rates

Rates began falling at the mid-year but loss activity has changed the mindset of underwriters.

Rate rises were anticipated by brokers amid inflation and investment market volatility.

Real non-life premiums are forecast to grow by 1.8% in 2023 and 2.8% in 2024.

In Q3, 46% of primary policies renewing with the same limit and deductible received a price decrease, while 16% received a price increase, according to Aon. 

Cyber saw the biggest increase in the quarter, while financial and professional lines saw a slight reduction.

Winter storms in the first half of 2022 are expected to result in claims totalling EUR1.4bn.

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

Reinsurers and brokers alike have warned of a rocky 1.1 renewal process ahead as the industry grapples with multiple issues including inflation, climate change and geopolitical uncertainty.

Marsh CEO Martin South added that the broker expected to see property rates easing, but "the reverse is going to be true."

The reinsurer is working to find the right inflation indicators for individual client portfolios.

Munich Re board member Thomas Blunck warned inflation will remain high in 2023, driving up loss costs.

The move reflects the ratings agency’s downgrade of majority owner Fosun last week.