At this moment in time, big cedants retaining more risk is a hot topic. Intelligent Insurer examines why this is happening and what it means.
One of the big talking points of this reinsurance renewal season has been that of cedants retaining more risk on their own balance sheets.
In fact, this is hardly a new trend—most insurers say the process has been a gradual one which started some 10 years ago. What is more, it really applies only to the biggest, global, players with balance sheets that can take on more risk in this way.
Yet there are many in the market that see such a strategy as counterintuitive in a market where rates are so soft and risk transfer mechanisms so abundant in a world that also appears more risky than it has been in a long time.
cedants, retaining risk, Miller, Berkshire Hathaway, Catlin Group, ANV Holdings