Aon plc (NYSE:AON), a leading global professional services firm providing a broad range of risk, retirement and health solutions, today launches its Reinsurance Market Outlook – June/July 2020 report, availlable at https://aon.io/3fj6HbY
Key findings of the report include:
- Q1 total global reinsurance capital stood at USD590 billion, a decrease over 2019 of USD35 billion, or 6 percent. This result was comprised of a 6 percent drop in traditional reinsurance and a 4 percent drop in alternative capital ending the quarter at USD499 billion and USD91 billion, respectively.
- While traditional reinsurers saw impacts of COVID-19 that affected capital results at the end of Q1, alternative capital remains impacted by approximately USD15 billion in trapped capital.
- Despite different market dynamics than in many past renewals, insurers were able to secure needed limit in the face of already reported COVID-19 related claims, future uncertainty regarding macroeconomic trends and premium volume impact from COVID-19 for the longer term.