Buyer's market continues as reinsurance rates keep falling
Tuesday, 09 29 2015, Category: Insurance and Reinsurance, Country: World
Monte Carlo — Rates for property catastrophe reinsurance are likely to fall at the January renewals, but there are signs that the bottom of the pricing cycle may be approaching. While an absence of large catastrophe losses this year means rates are likely to continue declining, the double-digit pace of those declines is slowing to single digits at best, experts said during the Rendez-Vous de Septembre reinsurance meeting in Monte Carlo, Monaco, earlier this month.
At the midyear renewals, sources said, some programs were not fully placed and were repriced at higher rates. “I think there's continued pricing pressure in the industry, muted by a strong consensus that the downward slope is beginning to flatten out. We are seeing some programs in various lines just barely clear or fall short of the required capacity,” said Jay Nichols, CEO of Axis Reinsurance Co. in Zurich.
Source: Business Insurance