With the 1/1 2023 renewals having come to an end, we witnessed the hardening of the market internationally. Very few classes had softening rates. The capital supply at international market levels was subdued and other players are considering alternative capital for optimal placement results. With emerging risks and exposures occasioned by global instability and disruption of supply chains, Russia and Ukraine conflict, aftermath of COVID 19 ,we see that the risk landscape keeps on changing.

There has been increased activity around natural disasters too, with the intensity and frequency of cyclones and hurricanes on the increase. Whilst these have brought awareness to the general population of the need for insurance, they have brought new challenge for the insurance industry, in terms of modeling, claims management, pricing and overall risk management.

Equally demanding for the entire insurance market is the impact of IFRS17 which saw many regulators and the industry at large trying to explore the full impact once implemented.

On the other hand, new technology brings about new risks, which our clients and our clients `s clients would need to manage. Customer demand for more interactive and efficient digital platforms and products is set to continue, which will require insurers’ ongoing adaption to new technologies.

With that will likely come associated cyber risks, with ransomware and supply chain attacks continuing to rise. However, digital transformation remains essential for (re)insurers wanting to stay relevant, competitive, and reputationally sound in the current market.

The increased examination of insurers’ own Environmental, Social, and Governance (ESG) commitments will be a priority for firms as they wait to see how moving from voluntary to mandatory disclosure requirements plays out.  The landscape keeps changing and P&C Re believes  in every environment , its opportunity mixed with difficulty.