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Ultimate Guide to the Reinsurance Renewal


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  • Aon's Reinsurance Renewal Season platform accompanies a series of in-person events at Monte Carlo, APCIA, Baden and SIRC with a virtual platform hosting fireside chats, our renewal season briefing, reports, newsroom and updates from key locations to ensure you are virtually there.

Mitigate Market Uncertainties with Data-Led Portfolio Differentiation

The reinsurance market is facing a unique combination of market uncertainties. With a majority of property reinsurance programs renewing on January 1, we explore the challenges as some reinsurers reduce their appetite for catastrophe risk and reveal how to achieve portfolio differentiation in an evolving market.

Five Things You Need to Know

1 Macroeconomic volatility – with inflation being the number one topic – has coincided with an increased frequency of extreme weather events, causing reinsurers to reassess their appetite and creating a mismatch in supply and demand.
2 Reported equity has declined across the (re)insurance industry in 2022. Our estimate of global reinsurer capital is down 11 percent on June 30. Alternative capital is broadly flat at $96 billion, with the catastrophe bond market set for another year of growth.
3 The reinsurance industry has absorbed volatility and proved resilient to many historical shocks and challenges. Reinsurance remains a highly accretive source of capital for the insurance industry and one that is rightfully in high demand.
4 Insurers that take a pragmatic and flexible approach should yield materially better results this renewal, by anticipating market dynamics, exploring new sources of capital and differentiating with analytics to tell a granular story.
5 We see opportunities for diversification and growth beyond renewal, spanning the emerging market for intellectual property insurance that could one day surpass the mortgage reinsurance market, and the robust casualty and specialty reinsurance markets should remain attractive.

Key Drivers of Supply and Demand Dynamics

Capital Supply Drivers
  • Inflation
  • Economic and financial markets uncertainty
  • Lack of retrocession coverage
  • Climate change
  • Poor underwriting results
Reinsurance Demand Drivers
  • Inflation
  • Increased catastrophe loss activity
  • Model miss
  • Frequency of secondary perils
  • Investor concern on catastrophe volatility

Download our Ultimate Guide to the Reinsurance Renewal - Market Outlook for January 1, 2023 to learn more.

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Top Tips to Help Navigate a Challenging Market

In today’s market, clients that listen to reinsurer concerns and tell a granular story will secure capacity at the best available terms and conditions.

  • Articulate clearly how you underwrite for inflation and its impacts on your risk profile
  • Leverage data and analytics to differentiate your portfolio at renewal
  • Develop a custom view of risk to de-risk and reduce exposure concentrations, as well as to improve understanding of secondary perils and emerging risks
  • Understand your true cost of capital, including volatility of returns, which is critical to optimizing the long-term return on capital
  • Understand and consider exploring alternative structures for optimal placement results
  • Partner with an advocate to leverage long-standing relationships with traditional reinsurers, alternative capital investors, and new sources of capital

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