Reinsurance rates to drop at June & July renewals
Saturday, 04 22 2017, Category: Insurance and Reinsurance, Country: World
Broker Aon Benfield has said that it expects that ceding companies will be able to capitalise on the strong levels of capacity and competition in the reinsurance market to secure further improvements in pricing, terms and conditions at the upcoming mid-year 2017 renewal season.
With the April reinsurance renewals just closed and seeing favourable terms achieved for many buyers once again, Aon Benfield looks ahead and believes further price declines are likely.
This goes a little against the market sentiment of increasing stability, and as we’ve been pointing out for a number of months now recent highly competitive catastrophe bond pricing suggests that traditional reinsurance markets are going to have to respond with further rate cuts in order to hold onto all of their market shares.