Willis Re 1st view : contrasting realities

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      <subfield code="a">January 1, 2019, placements have highlighted the gap between pricing for accounts with peak peril exposures and/or poor loss records, and those with good loss records and/or non-peak exposures. The quality of the client counterparty is a significant factor in risk selection by many reinsurers. Notably, European property catastrophe renewals that benefit both from good loss records and a disciplined early renewal process have been able to achieve some risk-adjusted rate reductions, and similarly in the U.S., reinsurers' support for the preferred clients is evident in relatively muted renewal pricing on non-loss-impacted business. Buyers who delayed their approach to market in the hope of achieving better prices have found that, for the first time in a number of years, this tactic has not been successful. As 2019 pricing unfolds, the mid-year renewals may help to answer the longstanding question over how much impact the retro market has on first-tier reinsurance property catastrophe pricing levels</subfield>
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