Reinsurance price surge after mega-loss to be smaller
Thursday, 08 04 2016, Category: Insurance and Reinsurance, Country: World
Analysts at Deutsche Bank have warned that even a mega industry loss event might not be enough for reinsurers to sufficiently push up pricing due to capacity and capital, further evidence of the flattening of the market cycle.
Global reinsurance capital stands at an estimated $565 billion of which alternative capital makes up approximately $72 billion, says Deutsche Bank citing data from reinsurance broker Aon Benfield in a recent report.
The report explains that since 2012 the volume of alternative reinsurance capital in the space has tripled from $24 billion to the level reported today.