Reinsurance rate hikes at 1/1 renewals
Saturday, 12 09 2017, Category: Insurance and Reinsurance, Country: World
Property catastrophe reinsurers are set to see the first pricing increase in years as they race towards the January 1st renewals, Morgan Stanley said after speaking to 9 re/insurers at Bermuda meetings.
“Jan 1 renewals have been slower than normal but early transactions indicate +20-30% rate increases in retro, +10-20% in loss impacted reinsurance contracts, +5-10% in loss free US accounts, and +0-5% in Europe,” analysts noted.
This comes after five years of rate declines which resulted in a 50% cumulative rate drop, combined with record level catastrophe losses this year.