The Indian market once again witnessed lower catastrophe activity this year. Treaties of the public insurers, though, suffered losses due to super cyclonic Storm Amphan which hit eastern India in May 2020. The other two cyclones which hit either side of the Indian peninsula -- Nisarga (June 2020) and Nivar (November 2020) -- were relatively benign, says Willis Re in its April 2021 edition of its 1st View renewals report.
Flooding events also occurred but did not cause much damage to property portfolios.
Willis Re, which is one of the world's leading reinsurance brokers, commenting on property reinsurance, also says:
Reinsurance rate improvements on the non-proportional treaties were moderate and buyers took the opportunity to increase limits, particularly for the top EQ only layers. Increases in deductibles were also seen.
Rate improvements on the underlying primary business ensured continued interest in pro rata treaties. Despite GIC Re’s leading position, foreign reinsurers were able to garner more shares and some lead positions.
On Surplus Treaties, ceding companies increased retentions, sought increases in capacity and managed to secure higher event limits.
Pro rata commissions significantly differentiated public and private companies. Owing to prior years’ performance and better risk selection, the private companies enjoyed higher commissions and achieved better terms over last year. Loss participation corridors were removed for many of the private insurers.