Reinsurers can prosper even while pricing is lousy
Thursday, 06 23 2016, Category: Insurance and Reinsurance, Country: World
A lack of catastrophe losses significant enough to meaningfully drive any upturn in reinsurance rates, coupled with high levels of reserve releases enables reinsurers to perform better than the pricing environment suggests, according to a panel of industry leaders and experts.
Speaking at the Standard & Poor’s (S&P) Global Ratings 2016 Insurance Conference, held in New York recently, panelists discussed the state of the softening reinsurance marketplace and resulting sector trends.
Rates continued to decline at the key January 1st renewals across a range of reinsurance business lines, and while panelists expect further declines at mid-year renewals and beyond, there was mention of the noted deceleration of rate reductions.