Shift noted in reinsurance buying habits in Q1
Thursday, 05 12 2016, Category: Insurance and Reinsurance, Country: World
Global reinsurance companies have been reporting their first-quarter results over the last few weeks with many noting continued reinsurance market pressures. However, a shift in the buying habits of some cedents led to an increase in demand for reinsurance capital.
The reinsurance marketplace has been under significant pressure in recent times, with an oversupply of capacity from traditional and increasingly alternative sources adding to the turmoil, contributing to persistent rate declines.
Today’s highly competitive market has created a supply/demand imbalance that’s been favourable to buyers for some time now, leaving reinsurers to fight for a seemingly shrinking market share, resulting in ill discipline and the relaxation of terms and conditions by some.