January 4, 2011 by Canadian Underwriter
Canada experienced a significant reduction in reinsurance capacity secured during Jan. 1, 2011 renewals because of a continued movement from proportional reinsurance to excess-of-loss treaties, mergers and acquisitions and increased retentions, reported Aon.
These factors set the stage for a competitive domestic reinsurance market with excess capacity available to deploy, despite the fact that Canada experienced its second-largest catastrophe loss in history in 2010, Aon said in its 2011 Reinsurance Market Outlook report.
“Although reinsurers tried to maintain pricing discipline, the market supported single-digit reductions in catastrophe prices on a risk-adjusted basis for loss-free layers and programs,” the report says.
The report also found:
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