The war in Ukraine and extreme weather events have driven up the cost of reinsurance by as much as 200 per cent in crucial January renewals, according to a new report, threatening to raise premiums and reduce what insurers are willing to cover.
January 1 is the key policy renewal date for reinsurers, which share losses with primary insurers and so have a vital role in what can be insured and at what price. This year’s renegotiation of reinsurance policies has been the most challenging in years as reinsurers respond to pressure from spiralling inflation and large losses from natural catastrophes, as well as the fallout from Russia’s invasion of Ukraine.
James Kent, global chief executive at reinsurance broker Gallagher Re, which published the report on Tuesday, described it as a “very late, complex and in many cases frustrating renewal”.
The cost of aerospace reinsurance rose by between 150 per cent and 200 per cent, as reinsurers adjusted pricing in the light of…