Fitch: 2016 Reinsurance sector outlook negative
Saturday, 09 05 2015, Category: Insurance and Reinsurance, Country: World
The reinsurance sector is facing some hard decisions in 2016 as it copes with a cyclical soft market and a shifting market, according to a new report by Fitch Ratings.
Speaking at a briefing on the rating agency’s 2016 global reinsurance outlook, Martyn Street, senior director at Fitch, said that the rating agency is projecting a slight fall in net premiums written, from an actual total in 2014 of $108.1 billion to a forecasted total of $105.9 billion in 2015, with this decline mostly being down to the impact of a stronger dollar and a weaker Euro.
The Fitch outlook said that, at present, there are no convincing signs that the floor to the market has yet been reached, and that current market indicators suggest that the demand for reinsurance will remain subdued in 2016 due to weak global economic demand.
Source: Intelligent Insurer