ILS demand & reinsurance rate stabilisation expected
Wednesday, 09 14 2016, Category: Insurance and Reinsurance, Country: World
Global reinsurance giant Hannover Re expects the demand for insurance-linked securities (ILS) structures to grow in the coming years, and that reinsurance prices will show greater stability at January 1st 2017.
Germany’s Hannover Re has said that a lack of high-yielding alternative investments has seen the flow of ILS capital continue to enter the global reinsurance market, contributing to the ongoing supply/demand imbalance in the space.
During the 60th annual meeting of the reinsurance industry at the 2016 Monte Carlo Rendez-vous, the reinsurer said that it expects the flow of expanding ILS capital and features to continue, citing an expectation of increased demand for the asset class in the coming years.