Reinsurers historically expanded beyond their traditional lines of coverage and frequently suffered adverse claims. Consequently, life, accident and health reinsurance capacity has shrunk dramatically in recent years.

Following the events of September 11, 2001, total market shrinkage has reached over 50 percent. The markets that continue to operate on a restricted basis have tightened terms and substantially higher pricing.

Employee benefit costs continue to rise at an ever-increasing rate, fueled to a large extent by ongoing inflation of medical costs. Willis Re has developed several programs for insurers to assist in defraying some of those increases through product design and layering of reinsurance programs.