Rates

CEO John Forney says the renewal will be done with manageable price increases.

Reinsurers lift price expectations while cedants come to market ready to make concessions.

AIG “remains in a strong financial position” despite the pandemic, the executive said.

The ratings agency says the revision reflects a deterioration in the (re)insurer’s operating performance.

Reinsurance renewal largely completed without interruption; reinsurers achieve rate improvements on loss-impacted programs, limited fallout from covid-19; June renewal onward expected to be a different story

The agency said global carriers are well capitalised and that it expects policy exclusions to hold up.

In its Plane Talking report the broker said insurers are still focused on long-term rate adequacy.

Some programmes also renewed with Covid-19 exclusions.

Attempts to add full communicable disease exclusions have faced particular pushback from clients.

The analyst predicted that rate hardening will continue, albeit with reduced premium levels.

Near zero long term rates and the “amazonification” of distribution to take the market into unknown territory.

The embattled majority owner of Sirius blocked a planned rights issuance last week.