Not all reinsurers will survive today’s market environment
Saturday, 04 23 2016, Category: Insurance and Reinsurance, Country: World
Despite many reinsurers adjusting their strategies in order to mitigate the impacts of the softening market landscape, ratings agency A.M. Best has warned that the depth of testing market trends will prove too much for some reinsurance companies.
Following further rate declines at the recent April renewal season and with more of the same expected at the important mid-year renewals, reinsurers continue to struggle to find true underwriting profitability in today’s market environment.
Ample capacity from both traditional and alternative reinsurance capital providers continues to flood the sector, driving an intensely competitive marketplace that is underlined by the persistent benign loss environment, low investment returns, and ultimately diminished profitability.