Reinsurance to remain tough but rate declines to slow
Friday, 10 16 2015, Category: Insurance and Reinsurance, Country: World
Global reinsurance players small and large expect the soft market conditions to persist into 2016 as the search for a pricing floor continues and ongoing market challenges test reinsurers’ sustainability and market relevance, according to Standard & Poor’s (S&P).
The global reinsurance industry is enduring a testing time says insurance and reinsurance ratings agency S&P, with soft pricing, tighter regulations, intense competition, a lack of losses, excess capacity and a desire to remain relevant to cedants driving the sector’s most recent evolution.
“It’s a tough time now for the reinsurance business. Standard & Poor’s Ratings Services believes the industry is confronting these conditions with defensive strategies that for now will protect their market positions and balance sheet strength in this soft market,” said S&P.