Solvency II Increases Reinsurance Demand
Tuesday, 06 07 2016, Category: Insurance and Reinsurance, Country: World
Solvency II will increase insurers’ demand for reinsurance products as they seek to strengthen their capital positions via risk transfer, according to a report published by Fitch Ratings.
Reinsurance can help reduce volatility or improve the certainty of cash flows, which will have the greatest influence on more generic, short tail, commoditized reinsurance products, such as property, “where cost and price considerations are more sensitive,” said Fitch.
Source: Insurance Journal