Losses from large fire, Typhoon Yagi hit China's proportional treaty results

Loss-free treaties benefitted from notable risk-adjusted reductions, Gallagher Re said.

Losses from a large fire and Typhoon Yagi impacted proportional treaty results in China, according to a report by Gallagher Re. 

Whilst overall market commission levels remained flat, individual companies experienced varying terms based on their performance. Negotiations primarily centred around commission levels and loss protection corridors, it added.

The structure of catastrophe excess of loss programmes remained stable, with more formal and structured quotes obtained during the quoting stage.

Loss-free treaties benefitted from notable risk-adjusted reductions, particularly for earthquake-only layers. For loss-impacted contracts, price increases were more restrained compared to prior years, and placements were completed smoothly, supported by ample capacity.

In contrast, price movements for risk excess of loss were more subdued than those for catastrophe excess of loss, with attention focused on market fire loss activity, Gallagher Re said. 

To address differing views between leaders and buyers on potential loss amounts, additional premium features were adopted, it noted.