One of the most challenging and complex markets we’ve seen: GC’s Priebe

Guy Carpenter Chairman David Priebe has said that the current market environment in the reinsurance industry is “one of the most challenging and complex we’ve seen.”

Speaking today during a virtual media briefing held by Guy Carpenter in advance of the Monte Carlo Rendezvous event, David Priebe explained that the January 2023 reinsurance renewals will likely see a very wide range of outcomes for the brokers clients.

In his speech today, Priebe explained that the reinsurance industry needs to continue pushing beyond the kind of offerings that have been traditionally seen.

In order to respond to and address the “most complex challenges”, the industry “must go beyond the typical reinsurance offering,” Priebe urged.

Reinsurers and their brokers need to continue providing the all-important post-loss capital, Preibe explained, but also said that thinking about how the reinsurance industry can play a role before the event and in planning for them is also key.

He said that the industry mustn’t overlook its ability to innovate and define policy, especially when it comes to efforts to closing protection gaps, adding that this type of industry engagement with stakeholders can help to offset losses before they happen.

Looking ahead to 2023, Priebe said that the reinsurance market will still keep loss experience as a key focus.

The emerging headwinds and shifting views of risk will also be key at renewals, leading Priebe to say that, “cedent differentiation will remain incredibly valuable.”

Leading Priebe to sum up that, “Overall, this is one of the most challenging and complex markets we’ve seen in years.”

Adding that, on the next set of reinsurance renewals, “January 1 will likely follow a wider range of renewal outcomes than achieved in mid-year.”

Dean Klisura, CEO of Guy Carpenter also commented on market conditions during the briefing, saying that “2022 has been a very challenging year.

“For our clients, we expect the 1/1 renewal in 2023 to be equally challenging, in key segments of the market.”

Klisura added that, “We continue to see clear capacity constraints in the property market and retrocession market, across the global marketplace.”