iStock.com / zimmytws
As the Bermuda market absorbs the impact of the first round of quarterly results, an exclusive survey of Bermuda:Re+ILS readers has revealed that the latest round of renewals left the market somewhat flat.
We asked our readers the following question: “Now the dust has settled, were rate increases what you hoped for post-2017 cat losses?”
The results were extremely one-sided - 88.8 percent of respondents voted ‘no’, whilst just 11.2 percent said ‘yes’.
Looking at the reasons given by readers for this overwhelming result, one reader who voted no said that: “Too much capital remains available overall and price increases, even for cat-affected renewals, were limited at best.”
Another said that anticipated price improvements on loss-free business did not materialise, whilst one respondent simply said that the increases had been less than the market can sustain.
According to one reader the main reason for this was because there is substantial insurance capacity and that as a result rates remain below what they should be, something that another agreed on, commenting that excess supply of capacity ensured that reinsurers' hopes for price increases were not met.
One reader said that in their view the actual loss experience was not properly reflected.
However, there was a more cautious response from one final reader, who said: “We expected for increases to be much higher post 2017 CAT losses, however, it still is fairly early. Mid year will be a true telling.”
With the mid-year renewals not too far away it will be interesting to see what happens as the market absorbs the lessons of the first and second quarters of this year.
Bermuda, renewals, survey, price increases, disappointing, market, disapproval