EDITOR’S LETTER

Renewals: a hard road

“The US renewals experience was no less challenging.”

Renewals season is not known for being an easy ride, but the January 1, 2022 renewals were particularly gruelling for some global re/insurers.

A hard negotiating line was taken to improve pricing in Europe, with one reinsurer calling this push “striking” compared with previous years. If you look at the huge nat cat losses from severe thunderstorms across the continent, and particularly the devastating floods in Germany and the surrounding countries in summer 2021, it’s no surprise to learn that some of the most fraught negotiations were over property cat.

The US renewals experience was no less challenging, with one stateside broker describing it as “frustrating but ultimately fine” as rates rose on the back of heavy cat losses and secondary perils.

Find out more on how market actors fared on both sides of the Atlantic in our renewal special features.

Our big interview this issue is with Gallagher managing director David Ritchie, who shares his insights on the hard-pressed D&O market, which has been the subject of increasing litigation in recent years.

With some big players leaving the market and the subsequent hardening rates, read why Richie thinks it’s far too soon to write off this sector.

We also caught up with David Howden, chief executive officer of Howden Group, to find out how a world-first cat bond that combined volcano risk and humanitarian relief acted as a proof of concept that has now morphed into as many as 30 more deals.

No-one thought 2022 was going to be straightforward but the market signs look more optimistic than they have in previous years. Next stop, the April renewals.

Claire Churchard is deputy editor of the Newton Media insurance group

Image: shutterstock.com / Dudarev Mikhail