On reinsurers that chose to be cautious and defensive, the report said: “We saw a large reduction in natural catastrophe exposure in January 2022 for about half of 21 reinsurers after they reassessed their risk exposures in certain markets and geographies. We believe this is explained by uneven pricing adequacy across the globe, despite years of improved pricing. The average contraction was 20% for those reinsurers that opted to reduce absolute net exposure to a 1-in-250-year aggregate loss. To us, this suggests a clear, strategic de-risking.”
By contrast, reinsurers’ decision to increase their natural catastrophe risk exposure is pronounced relative
