Reinsurance is currently extremely efficient capital
Saturday, 03 12 2016, Category: Insurance and Reinsurance, Country: World
The fact that reinsurance represents an “extremely efficient form of capital” at current pricing levels is expected to result in an increase in demand from cedents, according to Jardine Lloyd Thompson (JLT) CEO Dominic Burke.
Reinsurance prices are at levels close to the lowest they’ve been in recent history and combined with the improved and expanded terms available, some reinsurance buyers are seeing an opportunity to acquire coverage at its lowest risk-adjusted level ever.
Speaking during his firms recent earnings call, JLT CEO Dominic Burke highlighted an expectation that demand growth for reinsurance will be seen as cedents demonstrate a “recognition that at current pricing reinsurance is an extremely efficient form of capital.”