|By David Pilla|
|A.M. Best Company, Inc.|
With the exception of catastrophe-prone accounts,
"What actually happened on
Boornazian said the market is "beginning to adjust" to the several ongoing factors that would all, individually, necessitate a market hardening. "But we are still only at the beginning," he said. "More change is needed to reach rate levels that are adequate for exposures, and the other external factors that affect our industry's profitability."
He added that in many areas, pricing remains at, or below, 1999 levels.
In its reinsurance market outlook for 2012, broker
The story of 2011 was one of catastrophes, capital, reserve releases and the economy, said
Coleman said capital was a big part of the way the year played out for reinsurers. The market started the year with about half a trillion dollars in capital, and "once the dust settles from the fourth quarter, we'll probably end up in about the same place," he said. "That probably puts some downward pressure on rates," he said.
Catastrophe-exposed accounts will see significant price increases, said Coleman. But other lines will be less affected, except by non-underwriting factors.
The broker noted that certain factors led to a muted January renewal season. Among them, some of the largest catastrophe-hit accounts won't renew until April, June or July.