Japan continues to attract reinsurers

By Howard Cheetham, Aon

THE April 1 reinsurance renewals in Japan this year provided clear evidence that the underwriting cycle is still alive and kicking. What reinsurers said would happen and what actually occurred proved different. Their stated commitment to maintain pricing at or about existing levels did not materialise and rates actually started to reduce. Although espousing that margins were not where they should be, through their actions reinsurers effectively accepted that the expiring premiums they were charging were more than sufficient to cover the corresponding exposures at this renewal. The hardening market has clearly peaked and is now entering a downward phase.