Mid-year renewals have further consolidated the positive trends at 1 January and 1 April 2024, setting the stage for a more competitive reinsurance market in 2025, said Aon, a leading global professional services firm providing a broad range of risk, retirement and health solutions.
In its report titled “Reinsurance Market Dynamics – June/July Renewals”, Aon said, “However, the market emerging from last year’s global reset is more dynamic so the ability to make informed decisions quickly, supported by data and analytics, will be key to navigating the market going forward.”
1 June and 1 July are significant renewals for the US, especially Florida, Latin America as well as Australia and New Zealand. Coming at the start of the Atlantic Hurricane season, and at a critical stage in the reinsurance market cycle, these CAT-focused renewals are also of global significance.
Overall, insurers achieved positive renewal outcomes at mid-year renewals, with property CAT risk-adjusted rate reductions and improvements in terms and/or coverage.
Australia and New Zealand
Insurers in Australia and New Zealand saw the return to stable market conditions at the mid-year, a key renewal date for the region with around 80% of property CAT reinsurance renewing. Relatively benign CAT losses in Australia and New Zealand over the past 12 months enabled a more predictable renewal at the mid-year 2024, with reinsurers clearly signalling renewed appetite for CAT risk in the region.
As a result, capacity at mid-year 2024 was more than adequate to meet demand, with pricing anticipated to be flat on a risk-adjusted basis, with many insurers experiencing reductions in the low-single digits.