Munich Re sees reinsurance prices falling at slower pace
Wednesday, 09 14 2016, Category: Insurance and Reinsurance, Country: World
Reinsurance prices are continuing to fall though at a slower pace than in previous years, Munich Re, the world's largest reinsurer, said on Sunday, echoing brokers and ratings agencies who also see moderate continued pressure on premiums.
The reinsurance industry faces a fifth year of falling prices, as insurance company clients choose to keep more risk, and profit, on their own books.
Reinsurers act as a financial backstop for insurance companies, helping them pay for large damage claims from hurricanes or earthquakes in exchange for part of the premium.
"We see rate reductions in most markets and most lines of business," Torsten Jeworrek, CEO of reinsurance at Munich Re told a media briefing, adding that he hoped the recent slowing in price declines would continue.