Only the costliest catastrophe could turn reinsurance pricing
Tuesday, 09 06 2016, Category: Insurance and Reinsurance, Country: World
Despite catastrophe losses in the first-half of 2016 being above the long-term average, “only the most severe event” would result in any meaningful turn from the soft reinsurance pricing, according to analysis from RBC Capital Markets.
The Atlantic hurricane season has been officially underway since the beginning of June and with September being the month that experiences the most landfalling events, on average (between 1851 and 2015), RBC Capital Markets has discussed the potential impact on reinsurers from both an active, and inactive season.
“Industry capital remains at an elevated level and only the most severe catastrophe loss would be enough to cause pricing to turn meaningfully in our view,” said RBC, in a recent report exploring the European insurance and reinsurance industry.