Cedants eye structured products on back of higher retentions

Insurers in the region could push reinsurers to alter the structure of some coverages in the upcoming renewal season, as the hard market continues and retentions rise, according to Tony Gallagher, chief executive officer–Asia-Pacific,  Guy Carpenter.

As the market moves away from aggregate covers and lower layers of cover disappear, reinsurance buyers will be looking for earnings protection or ways of smoothing losses from their reinsurers, perhaps using different structures, Gallagher told Intelligent Insurer.