Retrocession deep freeze still holds reinsurers in check: Gallagher Re

The retrocession market has yet to close more than a marginal “very, very few” deals that might set up reinsurer capacity for the 1.1 renewals, according to  Gallagher Re.

“As of yesterday, there are very, very few deals that have been signed for 2023,” Gallagher Re’s EVP of alternative distribution for North America, Allen Cashin, told the management board of the Texas Windstorm Insurance Association.

“I think we will see that happen over the next couple of weeks, but it is a very, very slow market on the retro side and therefore the reinsurers are very slow to put out lines on cat programmes in North America,” he said of the kick-on for the ongoing 1.1 reinsurance renewal struggles.

The shortfall in retro for reinsurers constitutes “the biggest change” on the market standing behind the “huge imbalance” on the reinsurance market, Cashin indicated.

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