Market seeks sustainable pricing, expect concrete talks: VIG Re

Early data flows and broker approaches suggest clients are earlier to the market to secure good deals. VIG Re’s Petra Kopf says expect concrete price negotiations at 1/1, not broad-brush moves.

Key points:
Early data pushes price talks
Discipline anchors German renewals
Nat cat focus; motor steadies

After several years of strategic and theoretical debate, the tone of this year’s reinsurance renewal discussions is expected to shift decisively towards more concrete negotiations on price – particularly in Germany. Early data flows and broker approaches suggest clients are moving sooner to secure favourable terms.

That’s according to Petra Kopf, senior underwriter at VIG Re Germany and acting market head DACH , who says this year’s Baden-Baden meetings will be defined by a clear shift in rhythm. “We will see more concrete discussions about prices,” she told Baden-Baden Today. “In the last two or three years, everything was a little later in the renewal cycle – more about theory and strategic options. Now, insurance clients are earlier to the market to secure what they hope are good packages for them.”

The early activity reflects both a maturing market mood and what Kopf calls a “recalibration” that’s taken place in recent years. “We’ve already seen a lot of data coming our way and brokers calling us, saying, ‘Can we discuss this before Baden-Baden?’,” she added. “That shows clients want to be prepared and have serious conversations earlier.”

Individual discussions, not broad strokes

VIG Re, like many reinsurers active in Germany, is entering renewal discussions after several years of portfolio rebalancing and repricing. “In tough markets, we’ve recalibrated our portfolio… made our voice heard at the reinsurance table and plan to confirm that position going forward,” said Kopf.

“We will not be putting up a broad brush,” she stated. “Every client is different, every experience is different, and every portfolio is differently exposed. So, we expect very individual discussions with our clients.”

‘t doesn’t pay out to be too opportunistic in this market. We hope to have civilised conversations around pricing.

That individual approach, she says, reflects a broader theme of being client centred. “It’s not one price for one product any more, it’s the overall focus on the client. We’re very hands-on underwriters. We empower our teams to make decisions directly with clients so negotiations can be swift and informed. That’s what we call agility.”

The German market remains one of Europe’s most traditional and disciplined, which Kopf believes is a strength. “German, Austrian, and Swiss clients are not as opportunistic as some others,” she explained. “They’re focused on long-term relationships, which aligns very much with our own philosophy. It doesn’t pay out to be too opportunistic in this market – we’ve all seen each other twice, if not three or four times. I’m very hopeful for very civilised conversations around pricing.

Price realism and discipline

As discussions intensify, Kopf sees natural catastrophe and property lines as central to pricing debates. “If we think about the pricing discussions that are already rumoured in the market, it’s clearly the nat cat lines,” she said. “But there are other challenges too… there’s still a lot of water pipe damage hurting insurers.”

Motor is another line under scrutiny. After years of tariff increases, the segment is reaching what she calls “a break-even point”. Kopf noted that “motor has not been very profitable for years. Now, after many years of double-digit tariff increases, we’re reaching equilibrium. It’ll be interesting to see if that influences original pricing, because reinsurers cannot make an unprofitable line comfortable again.”

In the German market, Kopf expects pricing to remain firm but realistic. “We’ve seen clients taking on higher retentions and accepting higher prices,” she said. “Some are now at a point of equilibrium again, and we can have sustainable discussions about long-term stability rather than one-year fixes.”

That balance between sustainability and flexibility is key to VIG Re’s approach. “We’re a technical reinsurer , so sound underwriting is the basis for everything,” Kopf stressed. “But we’re also pragmatic. We don’t want to look at single contracts in isolation, we see each client as a holistic organisation, and we want to build stability across their entire portfolio.”

‘Don’t forget the losses’

Kopf’s message to the German market is to keep discipline front and centre. “It’s just two years that the German reinsurance market has seen some profits,” she cautioned. “Before that, there were five years of significant losses. We’re forgetting too quickly that there needs to be an equilibrium between paying off past losses and earning back money for the future.”

Recent benign conditions, she warned, do not erase risk. “We’ve seen small events that don’t necessarily trigger reinsurance programmes but still cause a frequency of losses. Underwriting discipline remains key, particularly in the German market.”

“We know this terrain, we understand our clients’ realities and aim to be a reliable, long-term partner – not just a capacity provider for a single layer,” she concluded.

Petra Kopf is a senior underwriter at VIG Re Germany and acting market head DACH. She can be contacted at: p.kopf@vig-re.com.

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