No guarantees about reinsurance price increases
Wednesday, 10 25 2017, Category: Insurance and Reinsurance, Country: World
There can be no guarantee of survival for those reinsurance capital providers hoping for price rises, in the wake of the recent major hurricane catastrophe loss events, according to James Nash of broker Guy Carpenter speaking in Baden-Baden.
The capital structure of the reinsurance industry has changed dramatically, with over $90 billion of ILS backed capacity from the capital markets vying for opportunities at every renewal season.
Despite all the discussion of trapped capital and collateral, the view remains that the capital markets can mobilise quickly, meaning that reinsurers hoping to influence pricing at the upcoming renewals, in search of larger price rises, may not be guaranteed of success.