With additional demand entering the market, we anticipate that pricing, attachment points, terms and conditions will hold steady at 1.1 and throughout 2025.Jill Beggs
Reinsurance Executive Vice President and Chief Operating Officer
Heading into January 1, 2025 renewals, Everest Reinsurance executive vice president and chief operating officer Jill Beggs details what to expect for renewal conversations and provides advice for navigating those discussions.
What are your expectations for renewals and what does it mean for clients and brokers?
The current elevated risk environment continues to drive hard market conditions and demand for quality capacity. As a result, we are currently in a disciplined underwriting cycle and have reached a new baseline, which we expect to continue into the 1.1.25 renewal. With additional demand entering the market, we also anticipate that pricing, attachment points, terms and conditions will hold steady at 1.1 and throughout 2025.
Property market conditions in particular are likely to remain favorable as disciplined players such as Everest drive new capacity supply. In US casualty, ceding commissions will likely continue to reduce, but not by enough so more will be needed for better risk alignment. And while impacted by the geopolitical conflicts, we anticipate rates and terms improving in specialty lines. Overall, we expect more incremental demand from cedants, and we are leaning into these opportunities and are well positioned to meet their needs.
How do you foresee the current heightened risk environment impacting renewal discussions?
In today’s heightened risk environment, major market-moving events are increasingly connected and compounded on a regular basis. The above-average hurricane season including Hurricanes Beryl, Helene and Milton, wars in the Middle East and Ukraine, major elections, social and economic inflation, and climate change will all likely impact the market as we approach renewals. Cedants, therefore, require trusted partners with a breadth and scale of diversified offerings across business lines, products, and geographies, as well as deep vertical expertise to best meet their evolving needs.
Committed to client partnership, Everest constantly invests in and enhances our business to be there for our clients when and where they need us most, especially as the risk landscape increases. Everest’s global footprint, highly diversified business model and strength of our portfolio ensures we are able to provide reliable capacity on demand. Investment in our global specialties business ensures preferred partners benefit from our deep expertise across aviation, marine, cyber, engineering and parametric solutions.
What advice do you have for brokers and clients heading into renewals?
We anticipate this year’s renewal process will be highly competitive with cedants continuing their flight to quality as they refine their panels, and recommend that brokers and clients ensure they choose reliable partners, like Everest, who can meet the moment by providing tailored solutions and consistent, high-quality capacity.
At Everest, we lead with integrity, prioritizing our relationships with trading partners and are committed to long-term growth alongside our core clients. Our financial strength, diversified book, strong portfolio management, and balance sheet also protect our clients against rising natural catastrophes and their compounding insured losses, giving them confidence to focus on growing their business.
How is Everest approaching renewals?
At Everest, we’ve never been better placed to meet the challenging risk environment. Our capital strength provides ample capacity for upcoming renewals and positions us well to deliver long-term profitable organic growth as we continue to support clients who seek more limit and quality on their reinsurance panels. Our clients know we will help them navigate their increasing risks over the long term.
Trusted for over 50 years to protect the most complex global organizations, we are committed to being able to deploy meaningful capacity to fill gaps in the global market – especially in challenged markets where capacity is scarce and protection is needed more than ever. Everest partners differently, with an approach that remains consistent, transparent, collaborative, and productive in how we set terms and conditions, so partners always know where we stand and what our appetite is. As a result, our partnerships are strong and long-standing, and we fiercely protect them.
This Q&A originally ran in The Insurer with the title, “Reliable capacity and trusted partnerships remain paramount.”