M&A could stabilise reinsurance rates, but reduce demand in 2016
Saturday, 12 19 2015, Category: Insurance and Reinsurance, Country: World
A persistent flow of insurance and reinsurance industry merger and acquisition (M&A) activity trended throughout 2015, with “significantly” more deals expected over the coming months. This consolidation has the potential to stabilize rates, but diminish demand in 2016, according to KBW.
In an effort to remain relevant to the industry and clients’ alike, as benign losses, excess capacity, low interest rates, and heightened competition contributed to a challenging insurance and reinsurance market landscape throughout 2015, consolidation has been prominent throughout the year.
And, with much of the same challenges expected to continue at the upcoming January 1st renewal season, further rate declines of between 5% and 10% are predicted in property catastrophe reinsurance pricing.