The April reinsurance renewals for 2024 in Japan were orderly and in general proceeded with stable terms and conditions, according to The Toa Reinsurance Co (Toa Re).
In a report released earlier this month, the Non-Life Underwriting & Planning Department and Non-Life Underwriting & Planning Department of Toa Re, say that the renewals had turned from the hardening trend of recent years because increases in premium rates and tightening of reinsurance conditions had been effected in previous years.
Additionally, the improvement in the supply-demand balance of reinsurance capacity, influenced by the recovery of reinsurers’ capital strength due to improved business performance, and by the depreciation of the Japanese yen, as well as limited insurance losses in 2023 from natural disasters such as typhoons, also affected the renewal negotiations.
As a whole, the range of premium rates was close to flat or even slightly lower for some lines of business. In specific business lines such as liability, further improvements in the terms and conditions were requested owing to reinsurers’ concerns about US exposure.
Most reinsurance contracts of domestic non-life insurance companies, including cooperatives and Small Amount and Short Term Insurance (SASTI) companies, are renewed at the start of their fiscal year, generally 1 April.