Aon launches January 2019 Reinsurance Market Outlook report
LONDON (11 January 2019) – The Reinsurance Solutions business of Aon plc (NYSE: AON) has today published the January 2019 edition of the Reinsurance Market Outlook: Value Proposition to Buyers Remains High Despite Interesting Market Dynamics, which provides a comprehensive assessment of the key market variables that will affect reinsurance buyers in future 2019 renewals.
The report finds that reinsurance buyers continue to secure protection at accretive cost of capital terms despite a reduction in global reinsurer capital through 9M 2018. Global reinsurance capital overall fell 2 percent since year end 2017 from USD605 billion to USD595 billion.
Traditional capital saw a decrease of 4 percent in part driven by rising interest rates and the strengthening US dollar, while total alternative capital rose 11 percent to USD99 billion—an increase of USD10 billion since the prior year end.
Reinsurance demand showed slight increases in traditional products and lines driven by regulatory requirements, continued attractive market dynamics for buying, and recent losses in non-peak territories that have advocated for more robust coverage for these perils; however even with this increase, supply continues to outstrip demand.
Insured catastrophe losses over the past two years aggregate to approximately USD 230 billion. While 2017 created a new peak at approximately USD147 billion, 2018 losses alone are currently estimated at USD85 billion, 47 percent higher than the 2000-2017 average of USD56 billion.
The report also highlights the latest in rating agency and regulatory updates including S&P’s recent criteria proposals, Moody’s incorporation of cyber exposure, and A.M. Best’s building block assessments.
Read the full report here: http://bit.ly/rmo-jan-2019
Notes to Editors
Aon plc (NYSE:AON) is a leading global professional services firm providing a broad range of risk, retirement and health solutions. Our 50,000 colleagues in 120 countries empower results for clients by using proprietary data and analytics to deliver insights that reduce volatility and improve performance.
Aon announced in May 2018 it will retire the business unit brands of Aon Benfield and Aon Risk Solutions, which follows the retirement of the Aon Hewitt business unit brand in 2017. This move was designed to increase the rate of innovation across the firm and make it easier for colleagues to work together to bring the best of Aon to clients. Aon has five specific global solution lines: Commercial Risk Solutions, Reinsurance Solutions, Retirement Solutions, Health Solutions and Data & Analytic Services.
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