Property catastrophe renewals for April have echoed trends seen in the US at the start of the year, with pricing flat to slightly reducing in Japan, while South Korea, China and India also had increased competition, Aon says.

About 60% of Asia treaty business renews this month, including some of the world’s largest catastrophe programs in Japan and big portfolios in other parts of the region. 

“The April 1 reinsurance renewals were more predictable and generally favourable to reinsurance buyers,” the broker’s Reinsurance Solutions Asia-Pacific CEO George Attard said. 

“As mid-year renewals get under way for the catastrophe-exposed markets of Florida, Australia and New Zealand, reinsurers are indicating a strong appetite for catastrophe risk.” 

The positive trend of the January and April renewals is expected to continue mid-year, with adequate capacity for property catastrophe risks and enhanced pricing competition, he says. 

Gallagher Re says there has been a continuation of reinsurance markets moving to a “risk on” approach in property catastrophe, in search for growth.

“The market now has more capacity at its disposal, driven by a mix of much improved underlying combined ratios, a light natural catastrophe load, despite insured natural catastrophes across the industry being heavy, and better investment income,” the broker said. 

“This, coupled with increased appetite, should lead to an easing of terms and conditions for clients despite the continued challenges facing the insurance market on natural catastrophe exposure.” 

Gallagher Re says in the results period for last year, many companies reported some of the best reinsurance underwriting conditions in more than 20 years. “The radical redistribution of risk between primary and secondary markets in property catastrophe and specialty segments during 2023 stimulated a greatly improved equity story for reinsurers.”