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Member, Beacon International Group, Ltd.
LONDON There is "relatively plentiful" capacity for almost all reinsurance business that is not exposed to United States' windstorm, and prices in some areas are softening, according to reinsurance brokers at Aon Ltd. in London.
Aside from for U.S. catastrophe-exposed programs, there is sufficient capacity in the reinsurance market, and price reductions of between 5% and 10% were seen on some business at the January 1 renewals, according to Charles Cantlay, deputy chairman of reinsurance for Aon in London.
The reinsurance market is, however, maintaining discipline, he noted.
Although some underwriters of retrocessional cover representing about $1 billion of premium have withdrawn from the market over recent months, new capacity has come into that sector, according to Piers Cantlay, chief executive officer of reinsurance at Aon in London.
At the January 1 renewal, many buyers of retrocessional cover increased their retentions, he noted.