Robert Bisset, CEO, North America at global reinsurance broker Lockton Re, described the current reinsurance market as healthy and constantly evolving, with some divergence in appetite across certain lines of business creating opportunities.

In an interview with Reinsurance News, Bisset emphasised that the global reinsurance market is healthy, with plentiful capital, robust competition and options available for clients.

“We are seeing some divergence in appetite across certain lines of business, which creates opportunity,” he said. “However, reinsurers remain focused on returns and where they want to deploy capital.

“Our job at Lockton Re is to understand where the market is moving in order to bring the best solutions and capabilities together to ensure we are creating the optimal outcomes for our clients.”

Bisset said reinsurer discipline is broadly holding as market conditions soften, although current supply-and-demand dynamics are tipping the scales further in favour of buyers.

He explained, “Increased supply and reinsurers desire for growth has intensified competition which creates opportunities for buyers, but I wouldn’t characterise what we’re seeing as a wholesale change in underwriting discipline. Reinsurers are looking for differentiation between cedants – not only analysing individual transactions, claims performance, and quality of data in order to determine where to put their capital to work but also the underwriting firm itself as each reinsurer focuses on their pre-selected “target clients”.

“For us, it’s about understanding those dynamics and making sure our clients benefit from increased competition without losing sight of the long-term value of strong relationships with their reinsurers.”

Bisset also pointed out that, over the last two years, the discussion and investigation of frequency protection and aggregate covers has increased.

He noted, “Analysis of these structures is a staple of every RFP and Structural Review in which we participate. However, we have not witnessed a significant up-tick in buying aggregates. If purchased they tend to be an enhancement to the traditional core occurrence structures, not a replacement for it.

“Aggregate covers are of interest because clients (and their C-suites) are not just focused about a single major event. They are concerned about the volatility that can come from a series of events and asking how their reinsurance programme can respond most effectively. There is appetite from reinsurers, but these aren’t necessarily straightforward covers. The data, structure, attachment and economics have to make sense for both sides.”

Looking ahead, Bisset commented on how he sees pricing evolving at the 1 January 2027 renewals, stating that it is difficult to make one blanket statement because every client, segment and portfolio is different.

“There is clearly more competitive pressure in property and property cat,” he stated. “Where clients have good-performing portfolios and strong data, I think they’ll have options.

“Casualty is different. There’s still a significant focus on loss-cost trends and uncertainty, so I think reinsurers will continue to be thoughtful about how they approach that business.

“The key for us is not simply determining whether rates are going up or down. It’s understanding what the changing market means for each individual client and using that environment to improve their overall programme.”

During the interview, Bisset also discussed the main topics of conversation at this year’s American Property Casualty Insurance Association (APCIA) Annual Meeting.

He said, “The renewal season will be late this year, therefore the APCIA is not the “working conference” it has been historically, so the talking points have been in line with previous conferences, i.e. limited discussion of price and the potential to broaden terms and conditions.

“Signings have been a topic as clients and brokers navigate reinsurers desire for growth versus the prevalence of side cars, facilities and 3rd party capital. Clients are talking about how they manage volatility, where capacity is coming from, how they think about frequency versus severity and, ultimately, how they get the most effective use of their reinsurance spend.”

Bisset emphasised that APCIA remains valuable as it provides an opportunity to sit down with clients and markets, listen to their messaging and consider the solutions Lockton Re can bring to them.

On the topic of alternative capital, Bisset said it is an important part of the market and another source of capacity for clients.

“Having different forms of capital competing and looking for ways to access risk creates options,” he noted. “For Lockton Re, it is not about calling it traditional or alternative capital – it is about understanding the capital available, what it is looking for and how we can connect that capital with our clients in the most effective way.

“That combination of relationships, analytics and access to capital is incredibly important in today’s market.”

In his closing remarks, Bisset said, “The market is constantly evolving and that’s a good thing. It creates opportunity. Our job is to stay close to our clients, understand what they need and then use the full strength of Lockton Re, our people, our relationships, our analytics and our access to capital, to deliver the best possible outcome for them.”

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