Reinsurance capacity to remain high at 1/1
Friday, 11 11 2016, Category: Insurance and Reinsurance, Country: World
Global reinsurance giant Hannover Re expects to witness greater stability in pricing and terms and conditions at the upcoming January 1st 2017 renewal season, but does expect the volume of reinsurance capital available to remain high.
Despite a recent slowdown in the entry of alternative reinsurance capital and persistent rate declines in the global reinsurance sector, Hannover Re expects there to be ample capacity available at the key January 1st 2017 renewals, suggesting a continuation of the supply/demand imbalance that has engrossed the industry during its softening cycle.
However, a recent trend of stabilisation in pricing and terms and conditions, as reinsurers continue to push back against falling prices and search for a bottom in the pricing floor, is expected to persist into the new-year, explains the German domiciled reinsurer.