Reinsurance prices could fall double-digits in January
Tuesday, 10 20 2015, Category: Insurance and Reinsurance, Country: World
At the upcoming key January reinsurance renewal period, where many of the world’s major reinsurance program terms, conditions and prices are renegotiated and renewed, prices may decline by more than -10%, according to broker Guy Carpenter.
In the last few months most observers have opted for forecasting a more moderate mid-single digit price decline, with many pointing towards an expected -5% to -7.5% decline across the market. However, comments from reinsurance broker Guy Carpenter suggest that steeper declines are possible.
With traditional reinsurance capital at a high and no major industry losses having occurred to drain some of the capacity from the space, there is an expectation that price competition will continue to be prevalent at the January renewals.