Bottom of the soft reinsurance market remains elusive
Thursday, 01 26 2017, Category: Insurance and Reinsurance, Country: World
While the rate of decline in reinsurance pricing has been seen to have slowed, the bottom of this soft market remains elusive, as ample traditional and alternative capital continue to weigh, according to Fitch Ratings.
In a report on the Bermuda reinsurance market, in which the rating agency says it remains viable but pressured, Fitch explains that it expects pricing will remain under pressure for the remainder of 2017.
In a warning to reinsurers about the need to reduce their costs, expense ratios and to seek out efficiency, Fitch Ratings says that, with pricing already approaching the cost of reinsurers capital, any further material price drops could result in negative rating actions on Bermuda reinsurance firms.