Reinsurance 2024: Market Shifts and Positive Trends

As the reinsurance industry enters the second quarter of 2024, Gallagher Re's latest findings reflect a positive trajectory, signaling a departure from the challenges of previous years. The 2023 reporting season, which concluded in the first quarter, revealed an unprecedented shift in market dynamics, with many companies experiencing some of the most favorable underwriting conditions in over 2 decades.

This redistribution of risk between primary and secondary markets, particularly in property catastrophe and specialty segments throughout 2023, has catalyzed a significant improvement in reinsurers' equity narratives according to the Gallagher Re report titled, 1st View: Heading Out of the Woods.

Property Catastrophe Market

The beginning of April witnessed a continued shift towards "risk on" behavior in the reinsurance markets, resulting in increased available capacity in higher layers and incremental improvements in risk-adjusted pricing.

Reinsurers maintained discipline in the quoting process, showing reluctance to offer discounts but expressing a desire to increase capacity.

US Market Dynamics

Client demand for additional limits in the US market was met adequately, with readily available capacity at pricing aligning with underlying placements, thus ending the need for inverted pricing.

Specialty Classes

The quoting process for specialty reinsurance and retro pricing saw moderation, albeit from a higher starting point, with structural changes such as increased retentions adding complexity.

Find the full report, 1st View: Heading Out of the Woods, at Gallagher Re April 1 Insights.