EIOPA emphasizes risk-adequate reinsurance pricing
Wednesday, 12 16 2015, Category: Insurance and Reinsurance, Country: Europe
Europe’s insurance and reinsurance sector watchdog, the European Insurance and Occupational Pensions Authority (EIOPA), highlights the continued and ongoing threat that current reinsurance market conditions pose to the traditional business model.
In its latest financial stability report, which was published on the 9th December, EIOPA explains that key to the future of the traditional reinsurer business model is the need to ensure “risk-adequate” pricing is attained at the upcoming January reinsurance renewals.
With reinsurers facing pressure from the continued interest in alternative capital and ILS investments, as well as the pricing pressure applied by excess capacity among the traditional reinsurance community and the benign loss environment, ensuring adequate returns are secured for underwriting is increasingly key.