Signs of rationality in reinsurance, as capital growth slows
Friday, 09 11 2015, Category: Insurance and Reinsurance, Country: World
There are signs that an equilibrium between reinsurance capital supply and demand may be emerging, leading broker Willis Re to suggest that the “emergence of rationality” is being seen, as capital growth in the sector slows down.
The oversupply of capital has been one of the key factors driving the highly competitive market conditions in reinsurance, resulting in prolonged softening and driving reinsurers to expand terms and conditions to win business.
In its latest reinsurance market report, broker Willis Re explains that they are beginning to see the first signs of rationality emerging in the market, as the rapid growth of capital has begun to slow down.