The reinsurance industry is sufficiently capitalised to weather the spate of disasters that saw insured losses hit $US128 billion ($158 billion) last year, the third most costly in history, according to Aon Benfield.

Global reinsurer capital was about $US600 billion ($741 billion) at the end of September – an ample buffer.

“It is estimated that less than one-third of these losses fell to the private reinsurance market, representing a very manageable burden. Aon Benfield says. As a result, the losses [last year] have been absorbed without compromising the availability of reinsurance capacity,”

January renewals were late but orderly, marked by strong competition in many sectors.

The spike in reinsurance pricing, caused by the recent losses, may be short-lived as new capital enters the sector.