Analysis

Multiple carriers had to revise official terms to get programmes home as reinsurers held firm on price demands.

Reinsurers have held the line on pricing as cedants seek to close out deals, with the market showing further hardening.

Reinsurers push back on aggregate exposure from cascading covers as market gets more differentiated.

Two large ILS managers bucked the trend for alternative retractions, but traditional carriers recorded the fastest expansion.

Retro deals are seen as a particular concern over growing fears that trapped capital will again be an issue in 2021, as post-2017 innovations will be tested out.

Investment case is the strongest in more than half a decade, but competition for new inflows is still strong in the buyers’ market.

Modelling firms said there were too many variables to quantify the impact, but many factors could escalate claims.

ILS inflows are expected to dry up with some market segments set to be harder hit than others.