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Rethink - A curate's egg of a year.
(From Reinsurance)
Fresh from the Christmas and New Year break, Reinsurance shook off the remains of the turkey, took a few aspirins for the hangover, turned the Christmas tree into wood chips and plunged straight into finding out what the market thinks in our latest Rethink survey.
This survey was carried out in December, with the renewal season well under way. We asked you what the tempo of the season was like and hoping that we didn't get any replies containing the word 'dirge'.
We had a fairly mixed set of replies to this, with 43% saying that the mood was quiet as no-one was committing to anything just yet; 24% saying that it was the same as usual, neither busier or quieter than the previous year; and 24% saying that it was busy, with firm orders everywhere and programmes are busy getting placed. Only 9% of readers said that the season was really dead, with some deals not getting past the quoting stage.
One reader said that there were hard negotiations and competition, another that there was a slow response from most reinsurers. Another comment was that there were only a very few firm orders at this time, while one reader said: "It seems everything is being quoted by so many different people this year."
Changing the angle of attack slightly, we next looked at the mood of the 2005 renewal season. Here we had an overwhelming majority of 80% saying that the mood was cautious, with even loss-free, low-exposure accounts getting looked at twice. A relatively small amount (17%) said that the mood was aggressive, with everyone competing fiercely for good business, and a tiny minority of 3% said that it was neutral and that overall it was a well-balanced "renewal as expiry" market.
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