Munich Re’s Schwimmer: Cedants set to buy increased property cat limit at 1.1

Some clients are already signalling they will be seeking more capacity at 1.1 amid expectations that demand will increase this year, according to Munich Re’s Christa Scwhimmer.

Scwhimmer, who serves as senior executive manager for the Lloyd’s and Bermuda markets, told The Insurer the big question as to what happens at 1.1 will be determined by the next six weeks in the Atlantic Basin in terms of hurricane losses.

That aside, she said the property market environment remains favourable.

“Last year there were a number of corrections undertaken to bring us to the place we are in now,” Schwimmer said.

“Prices were increased in line with loss trends and we also had more clarity with wordings. We see that as ongoing for 1.1.2025. And we have already come across some clients who are seeking more capacity.”

“In the property space, we are trying to defend what we have achieved in the past two years. The industry can at times have a short-term memory,” she said.

She said conversations with clients were also taking place around rate adequacy for US casualty business.

“There is a lot of discussion as to whether the rate change we are seeing is enough to cover loss trends and inflation,” she said.

“If loss trends are rising by a higher amount than rates, then we would consider that to be a reduction in pricing.”

For cyber, she said Munich Re’s momentum was now stabilising again after a reduction in growth following the implementation of cyber war exclusions.

“Cyber was our strongest area of growth but last year came off a bit following the introduction of war exclusions. Those clients with which we couldn’t agree on the war exclusion we gave up. But that is stabilising now,” she said.

During the Rendez-Vous Munich Re forecast the global reinsurance market will grow by 2 to 3 percent over the next three years, largely in alignment with primary market growth.

The reinsurer said growth could be slightly stronger in Asia Pacific and Latin America when compared with Europe and North America.