"Vibrant" Reinsurance Market Bolstered by Structural Changes
Lara Mowery, Guy Carpenter's Global Head of Distribution, discusses structural changes and how they've affected the reinsurance marketplace.
In this video interview with The Insurer TV, Guy Carpenter’s Lara Mowery, Global Head of Distribution, describes how structural changes within the reinsurance market in recent years have played a role in the return to profitability within the segment.
“A year ago, we were in a very different market, with an incredible amount of adjustment going on in price and program structures and the evaluation of reinsurers relative to their view of risk, fundamentally leading to a market correction,” Lara explained. “We’ve seen a lot of that change from 2023 now having an effect in 2024, so we’re in the process of transitioning.”
Lara went on to describe how the transition has led to a healthier market.
“In having the results of the price changes, the structural changes and the change in reinsurers’ focus on how they want to approach 2024, it’s created an environment where we’ve gone from reinsurers not making their costs of capital for 4 out of the last 6 years, to know in an environment where those returns are much healthier,” she continued.