Reinsurance renewals see price stabilisation hopes dashed
Monday, 01 04 2016, Category: Insurance and Reinsurance, Country: World
The hopes that reinsurance prices would stabilise at the key January 2016 reinsurance renewals have been dashed, according to broker Willis Re, with further price declines seen across the bulk of the market.
Speaking to the FT today in advance of its main renewals report being published next week, Willis Re International chairman James Vickers said that while there had been hope earlier this year that the worst of the reinsurance rate declines were behind us, the market has seen its hopes dashed and prices continue to fall.
As we wrote should be expected yesterday, rates in the UK and Europe are reported to have been most affected, with the UK seeing property catastrophe reinsurance rates down by -10% to -15%, Europe -5% to -12.5%. The U.S. did see more stabilisation of pricing, but still ongoing declines, witnessing prices falling by -2.5% to -7.5%.