Why it is used
The cycle influences placement strategy, retentions, limits, wording, and the value of long-term relationships.
Reinsurance Intelligence · Market dynamics
All conceptsCapacity & Market Cycles
Capacity is the amount of risk markets are willing and able to assume; hard and soft cycles describe shifts in price, terms, and availability.
Illustrative example
After major losses or capital pressure, renewals may harden through higher price, attachment, or tighter terms.
Programme questions
- Risk-adjusted—not headline—price
- Terms and attachment changes
- Counterparty diversification
Educational overview only. Reinsurance effect depends on the complete contract, programme structure, accounting basis, law, facts, and counterparties. The original insurer normally remains responsible to its policyholder.