2017 to more challenging than 2016 in reinsurance
Saturday, 12 31 2016, Category: Insurance and Reinsurance, Country: World
Despite the fact that rate declines are expected to slow down at the January 2017 renewals and beyond, for the insurance and reinsurance market 2017 is likely to be even more challenging than the year we’ve just seen, according to Kroll Bond Rating Agency (KBRA).
2016 has seen reinsurance market pressure reach a peak, as the excess levels of traditional reinsurer capital and continuing to grow levels of alternative and ILS sourced capital, weighed on a market that has not faced particularly severe losses, where investments are not contributing to profits and where competition is consistently rising.
While the market believes it is nearing a pricing floor, at least in the most under pressure property and catastrophe risks, the outlook is not really improving and for traditional companies it is anticipated that 2017 may be even more difficult to turn a healthy profit.