There’s ‘Angst and Anxiety’ Around 1/1 Renewals

Global issues such as inflation, the impact of Hurricane Ian and geopolitical tensions will be felt in Asia-Pacific at the January renewals, as well as regional losses.

The 1/1 renewals are the big focus for Kevin Bogardus, head of business development for Asia-Pacific at Everest Reinsurance, as he told SIRC Today that there’s a lot of “anticipation, angst and anxiety” around renewals currently in the market.

“The question is how will it play out? I would say that most reinsurers are talking but we haven't seen a lot of quotations yet out in the market. There is the expectation, of course, for a hardening market,” he said.

Bogardus said that as “no one region is isolated any more”, global issues such as inflation, the impact of Hurricane Ian and geopolitical tensions will be felt in Asia-Pacific, in addition to the losses seen throughout Asia.

The withdrawal of capacity from the market is another issue he is monitoring and, related to inflation, the requirement for more capacity.

“You have more capacity being demanded or sought, as capacities are largely being withdrawn in some cases, and there’s going to be a mismatch between supply and demand. That, obviously, is what drives pricing up,” he said. Bogardus, who joined Everest about two months ago, came on board to build up the reinsurer’s presence in Asia-Pacific and told SIRC Today that he sees “tremendous opportunity”.

“There are great opportunities throughout the Everest Re Group, whether we’re talking about the reinsurance side or the insurance side, which we recently opened here in Singapore. We have the capacity and the will to be there and to support the market.

“The question comes down to where we deploy that capacity,” he explained.

He said that capacity is finite for the market as a whole and certainly for Everest Re. “We have that capacity to deploy, but it comes down to getting the right terms and conditions and the right price, and also very important is the right partner.” The decision on where to deploy capacity is not just about a transaction, he said, adding that the reinsurer is working towards continuing to strengthen its strategic relationships.

“The company can deploy capacity in property-cat, which is obviously the hardest part of the market right now. We want to do that for partners we either have existing business with or partners the company has identified that it wants to grow with,” Bogardus explained.

“It’s about the partners who see the value that Everest Re can bring to them: a solutions-oriented approach, nimbleness, consistency and being able to deliver pricing and product in a timely fashion.” The company is looking for partners who are willing to seek Everest Re’s capacity not just in property-cat, but across multiple lines of business, from casualty to cyber and marine.

“We want to have a rounded portfolio with our partners, and we want a partnership that’s going to last beyond 2023. This is where we’re going to deploy our capacity.”

This originally ran along with a video interview in Intelligent Insurer SIRC TODAY with the title, There’s ‘angst and anxiety’ around 1/1 renewals.