Australian insurers buy sufficient reinsurance and the Australian market performs better than many others around the world, according to the inaugural Aon Re Insurer and Reinsurer Market Survey.
Stephen Warwick, Aon Re chief executive, said 100 Australian and international insurers and reinsurers were surveyed. “Most insurers and reinsurers believe the United States' 2005 hurricane season will impact on the price of reinsurance, and that property and casualty markets are moderate.”
He said negotiation and placement skills were key expectations of reinsurance broker services, followed by access to global markets and modelling services. “Insurers rank security, relationship and price as the top three services provided by reinsurers. If we did come into a harder market, most insurers (83%) would increase retentions and more than 60% would pay higher premiums to maintain quality of programs.”
Aon Re did not conduct its traditional post-renewal report this year because it said Australia's renewal environment was well reported by several sources. Warwick said the post-renewal reports produced by Aon reflected its own views and “not necessarily those of the entire market”.
The full survey results have not been released publicly.