Large US cedants shrink reinsurance panels
Friday, 03 24 2017, Category: Insurance and Reinsurance, Country: United States
Many industry participants have commented and speculated that reinsurance panels have shrunk over the past ten years. This is only true for the largest cedants, which have at the same time grown their ceding rates, according to a study titled “Buyer Trends in Property‐Casualty Reinsurance,” which analysed the US market.
The study which compares the years 2006 and 2015 shows that a majority of the largest cedants did decrease the size of their reinsurer panels. Among the top reasons were industry consolidation, a flight to quality, the expanding of capacity and services of larger reinsurers, the growth of alternative capital, a continued soft market, and a desire for more efficiency.
Source: Intelligent Insurer