Ep148 Reinsurance Reset 2023 with David Priebe, James Vickers & David Flandro

Today’s podcast carries on where we left off after the State of the Reinsurance Market Special Episode which was released after Monte Carlo.

We already knew this renewal was going to be difficult, but the subsequent intervention of Hurricane Ian stiffened reinsurers’ resolve further.

The result was a bruising and often frustrating encounter. You should already know the headline numbers by now:

Dedicated reinsurance capital shrank by the most since the global financial crisis of 2008

Global property catastrophe pricing was up 37% - the largest 1.1 increase since 1992

And there was a 50% increase in retro pricing, which means this highest echelon of reinsurance is now 165 percent more expensive than in 2017

The aim of this podcast is to put all of this into historical context, ask the big questions about who the winners and losers were and to examine what the change means for the 2023 outlook and the long-term strategic direction of the market and those who invest in it.

To help me I have representatives from three of the top four reinsurance broking groups.

David Priebe is Chairman of Guy Carpenter and brings experience and a global market view that few can match, although James Vickers Chairman of Gallagher Re International should certainly feel he is a peer.

Finally David Flandro Head of Analytics at Howden brings his unique research-focused mind to bear and to give us a bigger macro take on what has been happening.

A quick note. You must read Gallagher Re and Howden’s respective 1.1 reports as an essential accompaniment to this podcast. Both are hugely informative and insightful and are wholly complementary to each other

Links to both are below.

This was a bit more work than usual but I really enjoyed my three interviews and the subsequent time spent blending this highly accomplished trio’s thoughts together.

I think it brings the renewals to life and will be useful for anyone wanting to navigate the re-set markets of 2023

ABBREVIATIONS

IRR: Invested Rate of return

EVA: Economic Value Added

D&F: Direct and Facultative

NOTES:

David Flandro acknowledged the work of principal Howden 1.1 report author, Head of Research, Julian Alovisi.

LINKS

The Howden report is called The Great Realignment:

https://www.howdengroup.com/news-and-insights/the-great-realignment-2023

The Gallagher Re report is called Market Turns:

https://www.ajg.com/gallagherre/news-and-insights/2023/january/gallagher-re-first-view-market-turns/

We thank our naming sponsor AdvantageGo:
https://www.advantagego.com/

And our advertiser Bolton Associates:
https://www.bolton-associates.co.uk/