Brit Insurance group chief operating officer Jon Sullivan said January 1 this year was “very late” for policy renewals and reinsurers needed to remain vigilant and monitor any terms and conditions (T&C) delays.
As the market approaches the Jan. 1 deadline, Sullivan described the current renewal season as very late, noting that while most data has been analyzed and evaluated on deals, the market is waiting for customers to confirm order terms.
“While price movements are easier to monitor, this boom means reinsurers need to remain vigilant to monitor any slippage in terms and conditions,” he told Reinsurance News.
Adding: “What we are seeing is not new, but it has been some time since we have seen this level of uncertainty and lateness. However, this is only part of the cycle we are entering, so appropriate caution is required.”
Sullivan also noted the complex situation at the end of 2025. He noted that available margins are driving continued interest in the sector, inevitably putting pressure on rates and contracting.
“However, so far we have seen limited relaxation or expansion of terms and conditions for products such as aggregation, although some are emerging,” Sullivan said.
“If more value in the product is highlighted, we may see buyers look below existing retention rates, or above existing limits. However, pricing may not reach 1.1 levels,” he added.
Looking ahead to opportunities and expectations in 2026, Sullivan offers some perspective on how best to manage the cycle.
“As the market cycle evolves, a core book will be extremely valuable through 2026. Leadership will become more important and group rationalization will be expected.
“Flexibility, the right initial pricing and meaningful capacity will help seize opportunities as they arise,” Sullivan said.