Reinsurers’ betting on benign loss year
Tuesday, 07 11 2017, Category: Insurance and Reinsurance, Country: World
Further, and steeper-than-expected rate declines across the U.S. property catastrophe space at the mid-year renewals suggests the reinsurance market is struggling to find a bottom, as players bank on yet another benign underwriting year, according to analysts at Peel Hunt.
Citing reinsurance broker Willis Re’s recent analysis, Peel Hunt, in a recent industry note, highlights U.S. property catastrophe rate declines of between 2.5% – 7.5% at the July renewals, and “broad-based rate weakening across both property & casualty lines.”
The continued rate reductions across the U.S. property catastrophe space at mid-year renewals suggests the bottom of the current, softening pricing cycle is yet to be reached, a trend that is likely to persist absent a major loss event.