Lloyd’s Chairman to Reinsurers: Target Brokers’ Fees
Thursday, 09 15 2016, Category: Insurance and Reinsurance, Country: United Kingdom
Reinsurers, forced to cut prices for four years in a row, should target brokers’ fees as the industry seeks to reduce costs, according to Lloyd’s of London Chairman John Nelson.
The brokers need to cut profit margins as the industry struggles with low interest rates, declining rates and expenses related to the U.K.’s vote on leaving the European Union, Nelson said in an interview in Monte Carlo, where the industry is discussing rates for 2017. Prices have been eroded so much by competitors including pension funds that a typical year of claims could make the industry unprofitable, executives said last month.
Source: Carrier Management