Renaissance Re CEO: ‘Market Change Ahead’
The industry should “stay tuned” to gauge the combined effect of the revised catastrophe model from Risk Management Solutions and early year losses from catastrophic events in Australia and New Zealand, the CEO of Bermuda re/insurer Renaissance Re told National Underwriter Online News Service today [Mar. 8].
Neil Currie [pictured] described the controversial model changes and potential market impacts of the Australia and New Zealand catastrophes as meaningful.
Mr. Currie said while there was no January 1 reinsurance renewal impact from the pending model change, midyear property-catastrophe reinsurance renewals could be a different story.
“For the majority of buyers out there, the indications are that they might want to buy more, or, if you’re the supplier, that you might want to charge more,” he told National Underwriter. “So I think most of the impetus out there will be toward price increases,” he said, also noting that such price hikes could offset some of the softening influences caused by excess capacity in the market.
“A lot of what changes markets is fear, and I think there’s some fear out there … There have been losses in Australia and from the second New Zealand earthquake. Here we are at the very beginning of the year and a lot of folks have lost a lot of money in these events.”
He added, “Marry that up with the impact of the RMS model changes and, frankly, another market dynamic—the loss reserve increase at large insurance groups resulting in a rating downgrade—[and] who knows what’s in store for us,” he said. “I think there are things out there that could meaningfully impact the market dynamics.”
The full interview with Mr. Currie can be read at the National Underwriter Online News website.
Neill is such a cool dude! Most Humble\giving person I know!