New reinsurance demand to be exceeded by supply
Thursday, 05 21 2015, Category: Insurance and Reinsurance, Country: World
The reinsurance market continues to face secular and cyclical decline, according to analysts at global investment firm Bernstein and, despite all the evidence of growing demand, there is an expectation that it will be exceeded by the growth of capital in the sector.
Appetite for underwriting of catastrophe reinsurance risks shows no sign of diminishing, either among the traditional reinsurance fraternity or among the relative newcomers from insurance-linked securities (ILS) specialists and managed funds focused on the space.
The continued low levels of major loss activity, combined with excess traditional reinsurance capital and ongoing interest from the capital markets in the form of ILS and alternative reinsurance capacity sources, promises to easily soak up the additional few billion dollars of demand that have been seen in the run up to the key mid-year renewals.