Reinsurance prices to continue decline into 2016
Monday, 07 27 2015, Category: Insurance and Reinsurance, Country: World
Absent a continuation of the increased demand witnessed in the reinsurance sector during mid-year renewals, analysts have predicted that pressure on reinsurance pricing will continue into 2016, unless a significant loss event occurs.
Analysts at Macquarie noted that during mid-year renewals it was the new demand, largely in Florida, that was the “driver of better-than-anticipated price decreases,” despite the belief and optimism from some in the space that reinsurance pricing is perhaps nearing a floor.
The analysts continued, stressing; “Unless new demand continues to enter the market, we still feel reinsurance pricing will be pressured further in 2016 if we fail to see any significant losses in the re/insurance industry.”