Globally, The Reinsurance Market has seen immense hardening on the 01.01 renewals and this has been much needed. We would believe COVID-19 helped enable it all the more. Having said that, there was no real enabler for the hardening. There were no large CAT Losses, due to lockdowns imposed globally at different times, motor claims were extremely low, since the industries were not functioning to its capacity, the losses arising as a result were also less. Health Claims did see an extreme surge and so did the penetration. However other than Health, there was no underwriting reason for the rates to harden globally. This goes to show, how external factors or namely phobia created in the business environment can impact the Reinsurance Market. This has happened globally and set to happen in India.

India is susceptible to CAT Losses , however they do not make the majority of the claims for the General Insurance Industry. The loss ratios excepting COVID claims were less in India this year as any other market globally. However, The Rates are set to harden in line with global scenarios. This is both an opportunity and a risk. The condition created , serves as a phenomenal opportunity for a Few Reinsurers yet a risk to others, on losing business on account of trying to hard the rates beyond the comfort of the Cedant.

Limitless remains as a knowledge based be- spoke reinsurance solution provider with extreme integrity in managing accounts and ensuring sound credit control both with the Cedant and with the Reinsurer.
Best wishes for 2021 to all the readers.