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22nd March 2017
Conning looks at changes in US reinsurance market
Trend
The US reinsurance market has changed dramatically over the past ten years, for both ceding insurers and for reinsurers, according to a new study by Conning.
"Few sectors have undergone as much change in the past decade as the reinsurance market," said Matt Sternat, a vp, Insurance Research at Conning. "The lack of catastrophes, inroads from alternative capital, and changing buyer patterns have led to dramatic consolidation and change among reinsurers. Reinsurance buyer behaviour has been mixed, with concentration in reinsurer panels among larger cedants, but more diversification beyond the top 25 buyers."
The Conning study, "Buyer Trends in Property-Casualty Reinsurance: A Look at US Cedants and Their Reinsurers" reviews the changing buying patterns and use of reinsurance by cedants over the past decade. The analysis explores changes in concentration of reinsurer panels and collateral mix among top US cedants along with changes in the proportion of ceded premium by major companies.
"Even though insurers are ceding a larger portion of their premium, traditional reinsurers lost 20 points of market share in the past ten years, much of it to new captives," said Steve Webersen, head of Insurance Research at Conning. "Our analysis indicates 11 of the top 25 assuming entities were non-traditional reinsurers, either captives or government-sponsored entities, accounting for nearly 30% of the assumed premiums from that group. Within the traditional reinsurer group, stalwart leaders have defended their market positions, while others have not."
The study is available for purchase at: www.conningresearch.com
Conning Trends(119 articles)