Mini-cycles in rates are a new norm for reinsurers

The global re/insurance industry is rapidly changing and facing many challenges – but the industry is also responding, proving it can weather the tests thrown at it, Christopher Donelan, chief executive officer - Reinsurance, Sompo, told delegates at Intelligent Insurer’s Re/insurance Outlook USA 2024 conference, taking place in New York today (May 2).

Interviewed by editor Wyn Jenkins in an in-depth Fireside Chat to open the event, Donelan offered an overview of the global and US reinsurance industry, as well as Sompo’s strategies for growth – and what makes it different.

He argued that the days of the pronounced, global industry cycle where all lines of business harden or soften as one, are over. Instead, he said the industry is experiencing mini-cycles that can differ between lines of business.

He said things had settled since the 1/1 2023 renewals when there was disruption and a shortage of capacity on many lines of business, especially in Europe.

But the lack of a single, overarching cycle makes the job of navigating the industry now much more difficult for carriers. For Sompo, he explained that it comes down to good decision making using good data, while ensuring the company has the right talent to make those decisions.

Donelan set the scene for the conference’s morning agenda where a number of other speakers and panellists shared their observations of the market cycle and conditions now.

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