Speaking during Marsh McLennan’s Q1 2025 earnings call this afternoon, Dean Klisura, CEO of reinsurance broker Guy Carpenter, provided an outlook for the mid-year reinsurance renewals.
Klisura indicated that he expects the trends seen during the January 1 and April 1 renewals to continue into the June 1 renewal period, offering a sense of stability for the market despite ongoing challenges.
When asked if mid-year reinsurance renewals would mirror the January and April renewals in terms of attachment points and pricing, he responded: “The answer is yes. We expect a continuation of market conditions that we experienced at January 1 and April 1.”
His remarks suggest that the reinsurance market will remain stable as the industry enters the mid-year renewals, offering a degree of predictability for insurers and reinsurers alike.
A major focus during the discussion was the Florida market, which has historically been volatile due to its exposure to hurricanes and other natural disasters.
Despite the challenges posed by hurricanes last fall, Klisura emphasised that Florida’s reinsurance market remains stable.
“The market in Florida remains very stable despite the hurricanes last fall. So, we expect cat pricing to be very, very similar as at 1.1 and 4.1,” Klisura noted.
Klisura also highlighted the role of the active catastrophe bond market in reinforcing the Florida market’s stability. “We see an adequate supply of capital in the Florida market, and certainly the active cat bond market has kind of bolstered that impact to capacity,” he explained.
As the June 1 renewal period approaches, Klisura observed a trend toward clients purchasing more property cat limits, signalling increased demand for reinsurance coverage.
This aligns with the broader market trend of insurers seeking more comprehensive risk protection in the face of rising natural disaster threats. “We see clients buying more property cat limit at the June 1 renewal.”
Klisura also pointed out the positive impact of Florida’s legal reforms, stating, “We’re starting to see benefits from the Florida legal reforms, really lowering frequency and severity in the Florida market.”
Dean Klisura’s remarks on the Q1 earnings call suggest a stable outlook for the reinsurance market as the industry heads into the June 1 and July 1 reinsurance renewals.
With continued stability in Florida, the support of the cat bond market, and the positive impact of legal reforms, the reinsurance market is expected to see pricing and attachment points similar to those observed at the beginning of the year.
During the call, John Doyle, President and CEO of Marsh McLennan, also provided a brief outlook on the upcoming renewals.
“Early signs for the June 1 Florida cat risk renewals point to similar market conditions seen in January and April, with an anticipated increase in demand ready to be absorbed by more than adequate supply. As always, our focus is on helping clients navigate these dynamic market conditions,” he said.
The post Guy Carpenter CEO expects continuation of 1.4 trend at mid-year renewals appeared first on ReinsuranceNe.ws.