Overcapacity in global reinsurance set to continue
Monday, 06 08 2015, Category: Insurance and Reinsurance, Country: World
Overcapacity in the global reinsurance space is set to continue, with traditional and alternative or ILS capital likely to expand as insurance and reinsurance are increasingly institutionalised as an investible asset class, according to a recent report from JP Morgan.
JP Morgan’s report examines the impact on global reinsurance capacity of relatively benign catastrophe losses in recent years and the affect this has on Lloyd’s participants, alongside the influx of alternative reinsurance capital and growth of ILS markets.
“A period of benign losses and growing reinsurance capacity has resulted in arguably the most challenging pricing backdrop that the sector has seen in some time, with reinsurance and larger ticket lines particularly affected,” explains JP Morgan.