The 2005/6 reinsurance renewals season completed later than ever before with some programmes still not finished by their renewal date.
At a renewals briefing in London today, Aon Re UK also said that although this was one of the most difficult renewal seasons experienced, buyers were seeing high rate increases only for areas affected by US wind exposed risks.
Aon said the reinsurance industry has proved to be remarkably resilient following 2005's unprecedented series of losses, with substantial new capital having been raised to meet increased demand.
The company said we go into 2006, reinsurer discipline, despite this influx of new capacity, will remain constant and rating levels applied throughout the renewal season will be maintained, and may even firm slightly as reinsurers reach the limit of their aggregate capacity in peak zones.
Charlie Cantlay, deputy chairman of Aon Re UK said: "It is very much a market characterised by a great divide between business with US wind exposure and risk elsewhere.
"Bullish predictions of ‘across the board' rate increases on all lines of reinsurance in respect of product or domicile, have not materialised and major rate rises have been limited to US property, marine and energy and retrocessional business."
"The state of the reinsurance industry, at the time of the hurricane losses, was fundamentally more robust than the conditions that existed at the time of the 9/11 tragedy and this, together with replenishment and new capital, is the major reason why increases have been so narrowly focused."
