There is no capacity crunch: but reinsurers are being strategic

The reinsurance industry is not facing a capacity crunch. Instead, it’s strategically reallocating its capacity, with companies adopting a more prudent approach in light of historical setbacks and a dynamic market environment.

That was the main message from AM Best’s Reinsurance Market Briefing at the Rendez-Vous de Septembre (RVS) in Monte Carlo on September 10.

Carlos Wong-Fupuy, senior director, analytics at AM Best, emphasised that while the industry remains well-capitalised, there’s been a shift in how capacity is deployed.

“Companies are still well capitalised. The largest players remain in a solid balance sheet strength position and most of them haven’t changed,” he said.