Return pressure the new reality for reinsurance
Friday, 04 15 2016, Category: Insurance and Reinsurance, Country: World
Persistent challenges in the investment markets has created a need among reinsurers to rely more on their underwriting results, however, a continuation of price declines and reinsurance market structural change suggests a new reality of less impressive returns, according to A.M. Best.
Reinsurance industry rates remained under significant pressure at both the key January 1st and recent April renewals season, with some regions and business lines experiencing declines of more than -10%.
And with further declines expected at the upcoming June/July renewals, A.M. Best has warned that during the coming months reinsurers might need to accept a new reality of reduced profitability.