Concentration of reinsurance renewals on a few dates in the year, mainly January 1, April 1 and July 1, giving the market a calendar rather than a continuous flow.
A reinsurance treaty does not renew at the random date its inception fell on: the market has organized itself around a few dates, and that concentration has consequences geography alone does not explain. January 1 is by far the heaviest, carrying most of European non-life, most global programs and the reinsurance of many emerging markets. April 1 matches the Japanese accounting year and carries most of the Japanese market. July 1 carries a large part of the United States, Australia and New Zealand, and Latin America, and the Florida renewal in June is the most commented moment because it immediately precedes the hurricane season. Three effects follow. The January 1 renewal sets the pricing tone for the whole year, and the later ones reference it. Capacity is rationed at those dates, and capacity unplaced on January 2 often stays idle for months. And a major event occurring shortly before a date feeds straight into prices, while the same event two weeks later waits a full year to be priced.
The North Atlantic hurricane season runs from June 1 to November 30: the Florida renewal on June 1 is therefore negotiated before anything is known about the season, and the January 1 renewal is negotiated after. That lag explains why a heavy hurricane year feeds through into European January 1 rates, even though the peril has nothing to do with the exposure covered.
1er janvier, 1er avril, 1er juillet, renewal dates, saisonnalité du renouvellement