Business capacity for global reinsurers remains strong in Australia and New Zealand despite the losses from the 2010/11 natural catastrophes, according to Aon Benfield’s chief executive officer Malcolm Steingold.
Of $25.6 billion in combined losses from the Queensland floods, Cyclone Yasi, the Perth hailstorm and the New Zealand earthquakes, insurers recouped an estimated $16 billion from reinsurers.
According to Aon Benfield, the renewal of reinsurance programs at 1 July 2011 was orderly following significant catastrophe loss activity over the past 12 to 18 months.
"The insurance industry performed as intended and drew upon its significant capital resources to protect insurer balance sheets and earnings so that insurers could continue to help their customers rebuild homes and businesses," Steingold said.
While pricing in the region was higher at renewal, insurers continued to find the capacity they required, he added.
