What's going to happen at Monte Carlo? What subjects will be the most talked about?
o Matthew Mosher, group vice president for A.M. Best, said the issue going into Monte Carlo this year will be “the cycle itself–and the pressures [reinsurers] will have balancing market-share issues with profitability, given where the market is going without a major event.”
He noted that although Hurricane Dean was a major event, it could have done much more damage if it had hit a more populated area. “So, there still isn't that major event. There will continue to be some pressure on pricing, and to me, that will be the biggest issue–the balance of maintaining position, as well as maintaining a reasonable level of profitability because there will be a significant amount of pressure.”
o Brian Boornazian, Aspen's head of reinsurance, said he believes some Monte Carlo discussions will center on the significant reductions seen in property-catastrophe rates for larger European carriers during the Jan. 1, 2007 renewal season.
“It was surprising–the rate reductions that were seen there,” he said. “And it remains to be seen how the effects of Kyrill, the U.K. floods and other losses will affect those renewals this year. I think that will be a topic everyone will want to address.”
o Patrick Thiele, president and CEO of Partner Re, predicted this will be a “very sedate Monte Carlo.”
“Historically, it's been rating downgrades or a catastrophe” that's been a major headline grabber. “Last year, it was close on the heels of the June 1 and July 1 U.S. wind renewals, and that was a very different renewal period.”
He added that discussions occurring between reinsurers and insurers will most likely be focused on “the individual treaty terms the client has with the reinsurer.”
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