Reinsurance price deterioration could persist into 2018
Friday, 01 13 2017, Category: Insurance and Reinsurance, Country: World
In a recent interview with Artemis, Moody’s Investors Service (Moody’s) said that it expects pricing in the reinsurance industry to decline by up to 5% during 2017 and possibly decline in 2018, highlighting a continuation of the myriad of industry challenges.
Reinsurance industry players have noted further, albeit moderated price declines at the key January 1st 2017 renewals, a trend that Brandan Holmes, Vice President (VP), Senior Analyst at Moody’s, told Artemis he expects to continue in the coming months.
“We expect reinsurance prices to fall by 0% to 5% during 2017, and possibly into 2018. Ample supplies of alternative capital, including meaningful amounts waiting on the sidelines for pricing to improve, will likely cap any meaningful price increases, at least over the medium term,” said Holmes.