$135bn reinsurance overcapacity a significant driver of softening
Friday, 06 12 2015, Category: Insurance and Reinsurance, Country: World
market, and RBC Capital Markets estimates that by the end of 2014 reinsurance was home to roughly $135 billion of surplus capacity.
In a recent report analysts from RBC Capital Markets examine the European reinsurance industry, noting continued market pressures and what they believe to be a serious over-supply issue.
“Based on our analysis, we believe that there is a significant imbalance between the demand for reinsurance and the supply side. As a result, we expect that prices will continue to come under pressure,” said RBC.
The level of overcapacity in the global reinsurance sector is a significant driver of the softening