A recent report from Autonomous highlights growing concerns among reinsurers regarding the stability of terms and conditions (T&Cs) in the industry. As reported by Guy Carpenter, property catastrophe rates have plummeted by 16% since January, reflecting a shift towards price adequacy due to excess capital. While reinsurers strive for T&C stability, brokers note vulnerabilities in areas like hours clauses. With rising demands for aggregate reinsurance contracts, reinsurers are cautiously tightening limits despite signs of potential T&C loosening. The report warns that advocating for easier terms could jeopardize the sector’s stability and increase loss exposures. Further developments are anticipated as the year unfolds.
