The world’s major insurance companies also saw strong growth in reinsurance in the first half of 2022, with gains in commercial business rates driving growth.
Reinsurance broker Gallagher Re reported that premium growth across reinsurers is tracking at around 12% in H1 2022, supported by continued growth in commercial and reinsurance business.
However, growth is not even common across the board, with some companies taking advantage of the global and diversified business opportunities it offers them.
The biggest increase in premiums recorded came from international insurance companies, which as a group increased their premiums by 18% in the first half of 2022, meaning that diversity and global decline are beneficial to them technically.
Next, which often differs slightly, geographically and according to the line of business, North America and Bermudian re / insurance which as a group was increased by 14% in the half.
“Continued gains in commercial business rates remained the main driver of premium growth in Q2,” Gallagher Re explained.
With the second quarter of 2022 seeing premium increases, 9 of the 25 companies Gallagher Re tracks showed a significant increase of more than 20% year-on-year during that quarter, versus just 5 of the 25 at the end of Q1.
The supplier indicates that several management groups expect that the increase in the cost of goods will continue to exceed the loss of prices in 2023, but it says that the risk of loss has decreased by 1 percent compared to last year in Q2 2022.
It is also worth noting that the loss of natural disasters, as a contribution to the combined ratio between commercial insurance and reinsurance cohort, has also increased in the second phase.
For the first half of 2022, the combined ratio was 94.1%, all but three reinsurers posted a combined ratio of 100%.
Through the first half, the death rate of nat cat decreased by half a percent, but the second quarter alone, it increased by 1.5% to give 6% of the total number, and attritional loss also increased by 1% to 61.8%.
This, in the best part of the world’s major disaster events, but where the increase in climate risks continued to damage the profits of insurers.
Returning to premium growth, it is perhaps obvious that some of the strongest business growth is coming from global players, with most of the movers away from the cat risk being in the middle of the industry.
It is not the same across the board, as some suppliers around the world are also destroying the visibility of cats, which means that there are two ways in the market, since some companies believe that they have the writing technology and diversity in their sectors to take risks, even in the company. recent historical prices of frequency and severity.
After the mid-year reform, there has been little change in the industry to the US coastal wind as a risk, which means that each major storm this year can bring different losses to insurance and reinsurance companies, compared to before. years, which will be interesting to watch as the hurricane season progresses.