April 2021 Reinsurance Renewals: Korea

Prior to the April 1 reinsurance renewals in Korea, expectations for pricing increases were quite high. While Korea had not experienced any impactful losses in recent years, a mid-sized typhoon, heavy rain losses and several large single losses occurred in 2020, influencing the pre-renewal expectations. However, capacity was more than sufficient and certain markets were proactive as they sought potential cedents. Renewal Highlights:

• There was a clear movement of capacity from proportional to non-proportional and from risk to event.
• Following large single losses, many clients refrained from increasing their retentions and searched for more proportional capacity.
• Cedents increased deductibles or reduced coverages to mitigate price increases.
• Leaders were changed on various programs.
• Communicable disease exclusions and silent cyber exclusions were implemented in almost all programs without exception

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