Reinsurance pricing won’t turn this year
Tuesday, 05 16 2017, Category: Insurance and Reinsurance, Country: World
Reinsurance pricing is unlikely to change its course in 2017, with further declines in anticipated and the soft market environment likely to be prolonged as the bottom of the market remains elusive, according to Fitch Ratings.
Premium rates at reinsurance renewals are expected to keep declining through 2017 with the market characterised by “large volumes of under-deployed capital and sluggish demand from reinsurance buyers,” the rating agency said today.
This comes on the heels of a number of years where global catastrophe activity has only been around the average, and even if the cost to insurance and reinsurance players increases to historical averages that won’t be enough to change the pricing trajectory and harden the reinsurance market, Fitch believes.