Major losses in Q1 fail to stem softening of reinsurance market

Major property losses in 2010 Q1, originating from the Chile earthquake and storms in Australia, have had little impact on pricing in the global reinsurance market, reports Willis Re.
There has been no general market move towards increased pricing in property catastrophe lines, Willis Re found in its 1st View Report for the June 1, 2010 and July 1, 2010 renewals. This is “despite the fact that the Chile earthquake and Australia storm catastrophe losses, together with some other minor catastrophe losses, are probably sufficient to erode the entire 2010 catastrophe excess of loss premium base outside of the U.S.,” a Willis Re release says.
The report notes rate reductions being obtained in Florida have been as high as 25%, adding to a “growing nervousness” that the 2010 Atlantic hurricane season will be “exceptionally active.”
Peter Hearn, Willis Re’s CEO, said: “There is a concern that the longer the wait for any upturn in the reinsurance market, the more abrupt it will be once it eventually arrives.”