Reinsurers hope for an unidentified event to harden rates
Wednesday, 11 02 2016, Category: Insurance and Reinsurance, Country: World
Many believe a big catastrophe loss would not be enough to move the market. Instead, only a combination of factors or something much more sinister and fundamental would be needed to effectively scare third party capital from investing and allow rates to harden.
Stephen Catlin, the founder of Catlin and now executive deputy chairman of XL Group, believes not only that the market will turn but also that there will be an overreaction when it does, although it will take a number of factors converging to make this happen. The longer the soft market lasts, the more pronounced it will be, he believes.