Supply demand imbalance to lead reinsurance prices down
Thursday, 11 12 2015, Category: Insurance and Reinsurance, Country: World
The continued imbalance between supply and demand for reinsurance capital will lead pricing down by up to -5% in 2016, according to Standard & Poor’s and the rating agency does not expect the imbalance to level out over the next year.
S&P estimates that reinsurance rates will be down, on average, from 0% to -5% through the next year, so a less rapid although continued softening of the market as capacity continues to weigh on pricing.
Capital levels in reinsurance remain at all-time highs, with both excess traditional and the continued interest and ambition to grow seen among third-party or alternative capital providers helping to ensure the overall industry capital levels grows.