Hannover Re, Swiss Re, SCOR at risk in prolonged soft market
Saturday, 10 01 2016, Category: Insurance and Reinsurance, Country: World
Some of the world’s biggest reinsurers will be hardest hit by a prolonged soft market if an analysis of ratio of reserves to premiums is conducted, according to analysts at CreditSights.
The higher the ratio of reserves to premiums, the higher the risk profile of reinsurers in a prolonged soft reinsurance market, the authors explained in a report called ‘Global Ins. R-V: Window Shopping in Monte Carlo,’ published Sept. 28.
The ratio gives an indication of the velocity of the lines of business, the authors explained. By comparing the reserves to premiums, the analysts calculated a simplified average duration of the reinsurers’ lines of business. The higher the ratio, the longer the duration of the lines of businesses.
Source: Intelligent Insurer