The drivers behind the new reinsurance normal

After last year’s 1/1 renewal, and a significant correction of the global cat pricing, there has been a lot of discussion this year about whether the hardening market will continue. The “bigger” 1/4 and 1/7 renewals suggest that it will, at least in the cat market. But to fully answer this question it is worth evaluating the fundamental drivers of the reinsurance market.