In its review for the January 1,2005 renewals, Willis Group Holdings said the reinsurance market would not be severely impacted by the catastrophic events of 2004.
It said the high frequency of the hurricane and typhoon season would be recognised more for the relatively low severity per event.
The key findings of the review were:
·The casualty market is maintaining discipline yet there is evidence of price weakening in the aerospace and marine markets
·Buyers are becoming more discerning in their choice of reinsurers
·Significant compliance is now required for insurers to meet regulatory obligations
·There is growing emphasis on the quality of exposure data and technical knowledge which will test the credibility of the catastrophe models
·Recent forays into the traditional market by hedge funds offering fully collateralised capacity has created interest in this field.
