Decline in retro appetite will filter into primary markets: THB

The retro market has felt the impact of market changes in appetite and capacity across the Latin American region, Julian Vereker, head of group marketing at THB, told FIDES Today.

This impact should “slowly filter” into some primary markets, particularly those with larger catastrophe capacity requirements, according to the executive. He adds: “It is also probable that the reduction in insurance-linked securities capacity should also start to filter into primary markets.”

Vereker expects pricing again to dominate discussions at the FIDES conference. Across the region, higher rates are being seen, particularly in property, construction and stock throughput.

“Reinsurance treaty terms, conditions and exclusions have tightened in some cases and it appears that reinsurers are focusing on cedant underwriting criteria as an alternative to increasing rates.

“Continuity continues to mature, at least within the treaty market, and this has also contributed to put an end to the slide on rates,” he explains.

The specialist re/insurance broker plans to continue building its brand and presence throughout the region, through its network of local offices and the backing of its Latin America specialists in London and Miami.

Across Latin America, THB is looking to augment its position in financial lines, with property, marine/cargo and power/energy all areas the broker intends to build out further.

The firm has also seen an increasing interest in the rapidly growing market of cyber—Vereker says that THB is receiving requests for increased limits from existing clients.

In March 2017, TBH partnered with CNA Hardy to offer a new cybersecurity protection package for global industrial businesses. During FIDES 2017, Vereker told FIDES Today that the broker was seeing early cyber opportunities in the region and hoped to be “at the forefront of this product as it grows”.