Reinsurance pricing to decline at 1/1 renewals
Thursday, 10 04 2018, Category: Insurance and Reinsurance, Country: World
Reinsurance pricing is set to decline at 1 January 2019 renewals in light of manageable catastrophe losses over the third quarter of 2018, as well as ongoing overcapitalisation and the robust appetite of alternative capital markets, according to analysts at J.P. Morgan.
Commercial re/insurers and personal lines are likely to have exposure to a number of catastrophe events over 3Q 2018, including Hurricane Florence, the California wildfires, and Typhoons Jebi, Trami, and Mangkhut, which J.P. Morgan estimates could total $10-$20 billion in insured losses.
Such a loss is manageable when compared with last year’s insured hurricane losses of about $75 billion, and has been reflected in 3Q 2018 insurance price increases, which slowed by a couple of tenths of a point.