Pressure on reinsurance margins to continue: Munich Re CEO
Saturday, 04 25 2015, Category: Insurance and Reinsurance, Country: World
CEO and Chairman of the Board of the world’s largest reinsurance firm Munich Re, Nikolaus von Bomhard, said in a speech today at the reinsurers AGM that the current pressures on reinsurance margins look set to continue, with “no sign of this changing.”
Munich Re is itself not immune to the pressures created by reductions in pricing across many reinsurance lines, caused by the well-capitalised traditional reinsurance industry and growing competition from efficient sources of third-party and alternative capital.
von Bomhard hinted at the effect that low interest rates is having, pushing investors to look for new asset classes and yield, saying that “The liquidity thus created also has a secondary effect of generating very intensive competition in the reinsurance markets.”