WR Berkley sees price gouging in reinsurance, can walk away at will

Property/casualty insurer  WR Berkley Corporation has been witness to price gauging from reinsurers basking in the hard market and vows to not only continue to adjust structures for a better price fit, but walk away from “inappropriate” market activity, WR Berkley’s CEO said in a shot to markets.

“While we are very keen for our reinsurance partners to make a reasonable return, we are unaccepting of being inappropriately gouged and we will use our flexibility as appropriate,” CEO Rob Berkley said during his company’s first quarter earnings call.

WR Berkley has joined the industry move away from quota share towards excess of loss treaties as part of its attempts to manage rising reinsurance costs, officials indicated. That also has a kick-on for ceding commissions.

The group has in excess of 125 reinsurance arrangements across its group, officials noted.

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