Competition has intensified in Korea’s property treaty market, with a marked increase in the number of reinsurers vying for placements, according to Gallagher Re’s latest report.
The property treaty market in Korea saw positive results for the 2023 and 2024 periods, bolstered by a significant reduction in large risk and catastrophe losses, Gallagher Re’s “1st View: Property and Casualty by Country” report revealed.
Notably, the competition was fiercer for excess of loss placements than for pro rata arrangements, as reinsurers showed heightened interest in event excess of loss coverage. However, the quoting process was extended, as initial quotes did not meet the expectations of buyers. Once final offer terms (FOTs) were issued, placements proceeded more smoothly.
Buyers managed to secure favorable adjustments in their proportional programs, which included higher minimum commissions within sliding scales, better trigger points for Loss Participation Clauses, and reduced reinsured participation percentages.
Additionally, the market saw the arrival of several new reinsurers, while existing players focused on safeguarding their expiring shares.
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