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Up to $20bn in new capacity needed for Jan 2023 reinsurance renewals: JMP

A true reinsurance hard market may be around the corner, particularly in US property lines such as coastal wind exposed towers, with inflation a key driver and expected to result in a need for as much as $20 billion of new capacity to soak up demand at the renewals.

Already some of the biggest US carriers have indicated to the market that they could need upwards of a billion in new reinsurance limit, just to cover the inflationary effects and rising exposures in their portfolios.

Analysts at JMP Securities said that in Monaco at the Rendez-vous event in recent days, “Inflation and the potential for capacity shortfalls led the discussions, with the topic of pricing not at the top of the list, leading us to believe the upcoming January 1 renewal with be one of the more difficult buyers have faced in recent memory.”


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