Increase in premium rates and conditions in 2025 year

The casualty reinsurance market was affected by inflation and rising claims handling costs in 2024, leading to significant changes in premium rates and insurance conditions.

As inflation may significantly impact the profitability of reinsurers, stricter exclusions and revised terms are expected in 2025, along with limitations on risk exposure. Cyberattacks and environmental damage will require a more cautious approach from reinsurers in the coming year.

In lines of business such as professional and general liability (casualty reinsurance), reinsurers are returning more claims to insurers due to high exposure, meaning insurers will need to retain more risk.

The liability insurance market (casualty reinsurance) is set to undergo fundamental changes in the coming year, with reinsurers adjusting conditions and raising premium rates to better manage exposure to long-term claims and changing risks.