Willis Re reports 2006 renewal increases

Willis Re says price increases for U.S. accounts hit by hurricane losses ranged between 30% and 100%, with specialty lines and retrocession being severely affected.

Willis Group Holdings (NYSE:WSH) recently released its reinsurance review of the marketplace for the Jan. 1, 2006 renewals, indicating key findings including rate movements and territory and class line commentary.

Specifically, the report notes the marine and energy lines were seriously damaged; on a gross basis, the results were the worst on record. The impact of the 2005 hurricane season, the report continues, has dominated the U.S. reinsurance renewal season Jan. 1, 2006.

Some major catastrophe programs, Willis Re indicates in the report, are currently incomplete, notwithstanding significant elevation of attachment points and substantial increases in premium.

Willis says international casualty reinsurers are concerned with controlling their exposure to terrorism, while some U.S. reinsurers are excluding difficult exposures completely.

Rating agencies, risk modelers and reinsurance companies will, the report concludes, require greater transparency, analysis, exposure control, and structured clarity as a result of recent CAT events.

The report also found that growth of hedge fund/capital market participants outstripped their own infrastructure.