or most people in finance, January 1st is a day to gear up for the year ahead. For those in the reinsurance industry, however, it is a chance to wind down. While others enjoy a festive lull during the last two weeks of December, reinsurance professionals remain hard at work, finalising customer contact renewals. By the time January 1st comes around, it’s all done.

The process kicks off every September at a three-day conference in Monte Carlo. Representatives from across the insurance industry gather in a cluster of the most prestigious hotels around the Place du Casino to discuss where to set pricing and other terms for the year ahead.

Insurance companies rely on reinsurers to lay off risk. Passing some of their risks onto reinsurers allows them to underwrite larger risk limits on individual policies and a greater number of policies overall. It can also help them reduce earnings volatility and manage their capital more effectively. The transfer of risk to a reinsurer requires the primary insurer to pay a premium; the conference provides a forum for insurers and reinsurers to begin thrashing out what that should be.