While reinsurers faced what can only be described as a tough renewals, insurers experienced one characterised by increased competition and capacity, but which nevertheless remained responsible.
That is the view of Tony Mammolite, global head of worldwide property at Ironshore, who tells Bermuda:Re that “there hasn’t been any craziness in the market. If there has been anything out of kilter it has been the exception rather than the rule”.
He says that insurers largely maintained their discipline during a renewal in which pricing was flat to down 5-10 percent.
Mammolite says that the market is mindful that with investment returns still proving troubled there is a continued need to maintain rate discipline.
He explains that multiplatform players are increasing their presence in the insurance space, as they “seek to make up any market loss in the reinsurance area elsewhere” and this has in turn stoked competition in the insurance space.
Pressure has also been felt on terms and conditions, says Mammolite, who warns that underwriters need to be “cognisant of any potential changes that might creep in”.
“I am not talking about any dramatic changes to terms and conditions, but there might be the odd sub-limit here or an insertion there that underwriters need to be wary of”, he says. It seems competition isn’t only limited to rate.
Ironshore, insurance, renewals, rates, Bermuda