Reinsurance renewals have included a strong emphasis on maintaining cover for cedants exposed to the Middle East conflict, broker Guy Carpenter says.

The global market continues to soften, with notable price reductions recorded at the April 1 renewals in Asia and India.

“The Asia reinsurance market is demonstrating robust capacity and competitive pricing, particularly in Japan and surrounding territories,” Guy Carpenter Asia-Pacific CEO Tony Gallagher said.

“Despite geopolitical uncertainties, reinsurers are keen to support clients with innovative solutions, ensuring stability and continuity in a rapidly evolving environment.”

Given the scale of the war, potential losses across political violence, marine and aviation lines could be significant, Guy Carpenter says. Cover continuity remains paramount, with no prejudice against clients renewing and no acceptance of conflict-exclusionary language in contractual terms.

“Reinsurers in India and the Middle East are demonstrating a strong commitment to maintain coverage despite the complexities posed by ongoing conflicts,” India, Middle East and Africa CEO Atish Suri said.

“Our focus remains on protecting clients’ interests and ensuring no significant commercial limitations are placed on renewals, reflecting the resilience and adaptability of the market.”

Insured catastrophe losses for the first quarter are projected at about $US13 billion ($18.8 billion), more than 50% below the five-year inflation-adjusted average.

Guy Carpenter says reinsurers’ share of global losses continues to decline due to higher attachment points and fewer catastrophes.