Atlas Magazine December 2023

Reinsurance renewal 2024 : An upturn or just a respite?

After years of Covid-19 and a long period of sluggish financial income, reinsurers are beginning to bounce back. This is what emerges from the latest analyses by the rating agencies, all of which predict an improvement in the industry's outlook for 2024, underlining the sector's profitability, resilience and capacity to adapt.
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The current upturn could, however, turn into a mere respite, as the turbulence looming on the horizon casts a shadow over the future of reinsurers.

Foremost among these concerns are the geopolitical problems that are making the world increasingly unstable. Emerging countries no longer have a monopoly on political risk. High-intensity conflicts are even affecting the heart of Europe, leading to the disruption of economic circuits and supply chains.

Climate change also brings its share of uncertainties. The increasing frequency and severity of extreme climatic events is a cause for concern. These risks not only require capital, but also constant adaptation of pricing and risk management models.

Another crucial issue is cybercrime, which leaves reinsurers powerless to deal with this systemic risk. Nowadays, data collection and exploitation are a major social issue.

Finally, the slowdown in economic growth is weighing on premium income. The current business climate, marked by high inflation, volatile financial markets and sluggish economies, is worrying reinsurers, who are looking for more premium to mutualize more complex and unpredictable risks.

Atlas Magazine N°206 December 2023

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