James Boyce, CEO of Global Specialties, Guy Carpenter: The global specialty insurance and reinsurance market is navigating an evolving risk landscape and complex losses, due primarily to shifting geopolitical factors, economic inflation and claims dynamics.
Despite this, the market is healthy, supported by strong fundamentals, such as reinsurer consensus on price adequacy, increased retained earnings, growth in dedicated reinsurer capital and continued appetite for expansion. New entrants are further diversifying capital sources and greater competition.
Looking ahead, we predict a likely increase in demand for capacity with a softening reinsurance and retro market. Clients are expected to seek greater collaboration and alignment with their reinsurance partners, optimizing risk transfer strategies through improved pricing, terms and conditions.
Reinsurers are expected to recalibrate to adapt to the changing risk landscape and market conditions, balancing discipline with pragmatism. There is a sustained appetite for growth, and we anticipate those reinsurers who are willing to offer flexibility, product differentiation and innovation are most likely to prevail.
As the Specialty reinsurance market adapts, staying agile and responsive will be essential. Our focus remains on understanding our clients’ goals and providing the insights needed to develop a tailored strategy and secure the right coverage at the right price. Guy Carpenter’s market-leading data and analytics enables our clients to optimize their choice of partners and take advantage of the abundant capacity in this market.
Guy Carpenter Global Specialties 2025 Market Update
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