Over the past 20 years, the reinsurance industry has experienced three
profound forces for change. First, technological change has improved
information distribution and strengthened connections between global markets.
Second, regulatory emphasis on global equivalence in trading practices has
generated pressure for convergence across different marketplaces. Third, the
widespread acceptance of vendor property catastrophe models has led to more
standardised approaches to the evaluation of reinsurance risks, levelling the
playing field for decision-making on at least some classes of business.
However, there has been little systematic evaluation of the specific
implications of change for either trading practices or for future industry
evolution. This report addresses that gap by presenting the results of an
industry-commissioned, year-long study of reinsurance underwriting and broking
practices in the Lloyd's and Bermuda marketplaces.