After losses, insurers to use more reinsurance
Friday, 12 08 2017, Category: Insurance and Reinsurance, Country: World
Following the major catastrophe losses of recent months in the United States, Caribbean and Mexico, primary insurance carriers may be inclined to use an increased amount of reinsurance to manage their exposures.
Fitch ratings believes that an increased demand for catastrophe and property reinsurance protection could be one of the outcomes of the recent industry loss experience, with carriers likely to take advantage of the ongoing abundance of reinsurance capacity.
Fitch notes that, while severe, the losses only constitute around a 1 in 10 to 20-year loss event, which shows that it could have been worse.