Capacity in the marine, energy, and terror reinsurance market remains high, putting downward pressure on pricing. However, according to Richard Miller, Managing Director of Specialty Reinsurance at Howden Re, factors such as execution, technical expertise, and creativity are now more important than balance sheet size or longstanding relationships.
"Capacity expansion is keeping pressure on rates, but the real differentiator now isn’t balance sheet size; it’s execution, technical edge, and creativity. Legacy relationships alone aren’t enough. New providers are looking for growth and relevance, that gives us scope to innovate collaboratively with clients," Miller said.
Miller was featured in an article by Intelligent Insurer discussing how the current market phase is defined not just by abundant capacity and pricing pressures but also by significant changes in coverage structures and risk profiles.
He also pointed out shortcomings in the sector—specifically the lack of a dedicated model for strike, riot, and civil commotion (SRCC) risks. "The absence of SRCC modelling is one of the biggest blind spots in the market," Miller noted. "It has held back innovation. At Howden Re, we are working on ways to address this in time for Q1 renewals."
Looking ahead to upcoming renewal periods, Miller emphasized that success will depend on finding partners who bring both technical skills and a collaborative approach to help clients navigate ongoing changes in the industry. For Howden Re, he sees an opportunity to shape future developments in marine, energy and terror (MET) reinsurance by combining global reach with specialized knowledge and integrated solutions tailored to evolving risks.
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