Two thirds of natural disasters in 2011 occurred in Asia and as the April deadline for the reinsurance renewal got closer (April 1st) reinsurers were getting ready for the first real indication of how the damages had affected reinsurance rates in Japan and the rest of the region.
It was good news- as the market continues to work through the impact of the events of 2011, April’s reinsurance renewal rates have continued their rising trend seen in January according to reinsurers Guy Carpenter.
David Flandro, Guy Carpenter’s global head of business intelligence said that the reinsurance sector continues to function normally, despite 2011’s losses, and holds sufficient capital to support the Asia-Pacific region and the global property/casualty insurance industry overall.
“Japanese insurers were hit hard by catastrophic flooding in Thailand, which itself came less than six months after the Tohoku earthquake,” he said. “Nevertheless, we were pleased to see that reinsurers remained supportive of the Japanese market. Fortunately, loss activity during the first three months of 2012 has been relatively light, with insured losses expected to be under $5bn. This is significantly down from the first quarter of 2011, when insured losses exceeded $50bn.”