Reinsurance outlook still negative
Wednesday, 12 14 2016, Category: Insurance and Reinsurance, Country: World
The outlook for the global reinsurance market remains negative at rating agency A.M. Best as the firm cites the “continued market challenges” and an expectation that the longer the outlook persists, the more likely to is that we see negative rating pressure emerge.
A.M. Best analysts highlight the risk to reinsurers long-term viability, as longer-term challenges begin to emerge due to the sustained and persistent pressure the sector faces.
A.M. Best has been negative on the reinsurance market’s prospects since 2014. The situation since then has not changed and in fact in some ways the pressure has got worse, while increasing competition has risen from traditional and alternative sources of capacity.