New reinsurers enter Korea’s property treaty market, says Gallagher Re

Competition was more intense for excess of loss placements compared to pro rata.

Property treaty programmes in Korea achieved better results in 2023 and 2024 due to a notable decline in the frequency of large risk and catastrophe losses, reported Gallagher Re. 

Competition in Korea was more intense for excess of loss placements compared to pro rata arrangements, with reinsurers showing strong interest in event excess of loss covers, Gallagher Re’s “1st View: Property and Casualty by Country” report showed.

The quoting process was prolonged, as initial quotes did not align with buyers' expectations. However, once final offer terms (FOTs) were issued, placements proceeded smoothly. 

Buyers secured favourable adjustments to proportional programs, including higher minimum commissions within sliding scales, improved Loss Participation Clause trigger points, and reduced reinsured participation percentages.  

Korea’s market saw the entry of a few new reinsurers, whilst existing players concentrated on defending their expiring shares.