Japan 4/1 Reinsurance Renewal: Fire

Ed Fenton, Managing Director Contact Pro Rata Fire A change from the past few years, the renewal at April 1, 2009. During the 2008 renewal process, insurers indicated that they would undertake various measures to improve the original business that forms the subject matter of these treaties. This year, it was desirable for each buyer to provide some kind of statement or presentation to update the market as to their progress against the goals that had been outlined at last renewal. All the major players produced such a statement and these were generally well received by reinsurers. Fire Excess of Loss Pricing generally moved broadly in line with exposures. Reinsurer sentiment towards Japanese fire business eased modestly, and the fire capacity purchased by the market increased fractionally. Generally, pricing moved in line with exposures, with rate on line (ROL). The market remains extra sensitive to overseas exposures, especially if there is any perception of catastrophe exposure in key catastrophe zones or the United States.