Reinsurance, to better control exposure to catastrophes

The 1st of January renewal has shown that reinsurers are attempting to better control their exposure to catastrophes with a view to diminish “surprise” losses. The past year has been the second most expensive in insurance history. Some reinsurers are wondering whether risk diversification is helpful since it implies capacity concerns and exposure to “surprise” losses that may occur in territories which are hardly or not modalized. To address this issue, important efforts have been exerted to achieve data transparency during renewals, while other reinsurers chose to reduce their exposure worldwide.