Ep148 Reinsurance Reset 2023 with David Priebe, James Vickers & David Flandro

Today’s podcast carries on where we left off after the State of
the Reinsurance Market Special Episode which was released after
Monte Carlo. We already knew this renewal was going to be
difficult, but the subsequent intervention of Hurricane Ian
stiffened reinsurers’ resolve further. The result was a bruising
and often frustrating encounter. You should already know the
headline numbers by now: Dedicated reinsurance capital shrank by
the most since the global financial crisis of 2008 Global
property catastrophe pricing was up 37% - the largest 1.1
increase since 1992 And there was a 50% increase in retro
pricing, which means this highest echelon of reinsurance is now
165 percent more expensive than in 2017 The aim of this podcast
is to put all of this into historical context, ask the big
questions about who the winners and losers were and to examine
what the change means for the 2023 outlook and the long-term
strategic direction of the market and those who invest in it. To
help me I have representatives from three of the top four
reinsurance broking groups. David Priebe is Chairman of Guy
Carpenter and brings experience and a global market view that few
can match, although James Vickers Chairman of Gallagher Re
International should certainly feel he is a peer. Finally David
Flandro Head of Analytics at Howden brings his unique
research-focused mind to bear and to give us a bigger macro take
on what has been happening. A quick note. You must read Gallagher
Re and Howden’s respective 1.1 reports as an essential
accompaniment to this podcast. Both are hugely informative and
insightful and are wholly complementary to each other Links to
both are below. This was a bit more work than usual but I really
enjoyed my three interviews and the subsequent time spent
blending this highly accomplished trio’s thoughts together. I
think it brings the renewals to life and will be useful for
anyone wanting to navigate the re-set markets of 2023
ABBREVIATIONS IRR: Invested Rate of return EVA: Economic Value
Added D&F: Direct and Facultative NOTES: David Flandro
acknowledged the work of principal Howden 1.1 report author, Head
of Research, Julian Alovisi. LINKS The Howden report is called
The Great Realignment:
https://www.howdengroup.com/news-and-insights/the-great-realignment-2023
The Gallagher Re report is called Market Turns:
https://www.ajg.com/gallagherre/news-and-insights/2023/january/gallagher-re-first-view-market-turns/
We thank our naming sponsor AdvantageGo:
https://www.advantagego.com/ And our advertiser Bolton
Associates: https://www.bolton-associates.co.uk/