Competitive pressure will continue into the January 1 reinsurance renewals, with property rates already softening through 2024, according to SiriusPoint Group President and CEO of Global Reinsurance & London Market Specialty David Govrin. Speaking at the 68th Rendez-Vous de Septembre in Monte Carlo, Govrin said the lack of natural catastrophes has contributed to the downward rate trend, but reinsurers are balancing that with adjustments to terms and coverage features to maintain underwriting discipline.
Rate movements and coverage flexibility
Govrin pointed to the profitability of property business over the last two years as a key driver of current market dynamics. "Property has been profitable for primary insurers and reinsurers over the last couple of years. There is no doubt that rates have been coming down this year, in part due to a lack of nat cats, and this will create competitive pressure," he said. That pressure won't show up solely in pricing. Govrin expects it to appear through broader terms and conditions as well, with market drop-down covers, aggregate features, and expanded coverage terms already becoming more common.
He framed the discipline question as one of adequate compensation rather than rigid adherence to past structures. "Reinsurers have to be responsive to clients. It's really just a question of price and getting paid for the risk. If the risk is changing through changes in coverage, the question is: Are you getting paid adequately?" Govrin said this openness to conversation around clearing prices will continue into the renewal season.
AI's role in underwriting and operations
The discussion also covered artificial intelligence, where Govrin drew a clear line between operational applications and decision-making use cases. He sees tangible benefit in AI Data Analysis, data mining, data cleansing, and process flows. "For us, AI is a tool, and it's a tool that enables things like processing, operations, data access, and cleansing," he said.
On the question of whether AI should make underwriting decisions or simply inform them, Govrin acknowledged industry disagreement. "You'll have different views in the industry on whether you can use AI at its current stage to make decisions versus informing decisions, but I think it would be hard to argue that more access to data does not help decision-making." His framing places AI firmly in a support role for now, with the value coming from better data rather than autonomous judgment. For professionals tracking AI for Insurance, the distinction matters: operational efficiency gains are already here, while decision-making applications remain a topic of debate.
SiriusPoint's broader position
Govrin's comments arrive as SiriusPoint continues reshaping its portfolio. In August, CEO Scott Egan highlighted the firm's ability to move and redeploy capital across lines, segments, and geographies where returns are attractive. The company reported second-quarter 2024 net income available to common shareholders of $69 million, up roughly 16% year over year, with gross written premiums rising 5.5% to $981.5 million.
Why this matters for insurance professionals
The January renewal signals are clear: property reinsurance buyers should expect rate relief to continue, but the real negotiation will happen around coverage terms rather than headline pricing. For underwriters and actuaries watching AI developments, Govrin's distinction between operational AI and decision-making AI reflects where the market actually is - tools that clean and surface data are delivering value now, while algorithmic underwriting remains a longer-term conversation that requires careful validation before it moves from informing decisions to making them.
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