ILS discipline slows reinsurance softening
Tuesday, 01 05 2016, Category: Insurance and Reinsurance, Country: World
Discipline being shown in the insurance-linked securities (ILS) market, by investors and ILS fund managers, is one of the only factors in the global reinsurance market which is helping to produce the predicted “softening in the softening” of reinsurance rates, according to Willis Re.
Publishing its latest reinsurance renewals report today (sub-titled ‘Pricing Floor Remains Elusive‘), Willis Re, the global reinsurance broking arm of Willis Group, explained that reinsurance pricing continues to deteriorate at pace, with the only slowing in the softening being seen in the key peak peril zones in layers where the ILS market participates the most.
This factor, of ILS investor, ILS fund manager and general ILS market discipline on pricing and terms and conditions, has been cited before as the one thing helping to stem the downward slide in reinsurance pricing at recent renewals.