Doing the right things not enough for reinsurers
Friday, 06 17 2016, Category: Insurance and Reinsurance, Country: World
Global financial services ratings agency A.M. Best has delivered a stark warning to reinsurers, stating that in the current softening landscape, comprehensive strategies and discipline might not be enough for some to endure further challenges.
Reinsurers in all corners of the world remain under significant pressure from a range of ongoing market headwinds that has ultimately reduced profitability on the underwriting side of the balance sheet. And with investment rates remaining near historically low levels, the testing times are expected to persist further in 2016.
In response to continued rate deterioration and limited investment gains, reinsurers have been seen to adopt new and divergent strategies in an attempt to offset some of the implications driven by the softening landscape.