Reinsurer challenges put focus on underwriting
Saturday, 01 07 2017, Category: Insurance and Reinsurance, Country: World
The global reinsurance market continues to be challenged, A.M. Best Co. Inc. said in a briefing Friday, but the ratings agency’s composite overview for the sector still indicates reasonable results for 2016.
Best attributed the results to smaller U.S. catastrophe losses, ongoing capital management strategies and continued overall reserve releases.
“The new reality for the reinsurance market will reflect an industry where returns are less impressive and underwriting will have to become a larger contributor to profits and returns, leading to a more cautious risk selection, more diversification of product offerings, a wider geographic reach, and conservative loss picks,” the briefing said.
Source: Business Insurance