Reinsurance rates to fall at 1/1
Thursday, 12 15 2016, Category: Insurance and Reinsurance, Country: World
Analysts at RBC Capital Markets expect European reinsurers to experience further price declines at the start of 2017, but also sees some opportunity for more attractive returns in tailored solutions, an area that is likely to witness increased demand.
Reinsurance industry capital from both traditional and alternative sources remains in abundance, and while losses have heightened in more recent times, there’s been a lack of “truly market changing losses,” says RBC, suggesting a continuation of the softening landscape as headwinds persist.
Reinsurers of all shapes and sizes are finding underwriting profitability increasingly difficult to find, and with combined ratios creeping ever closer to 100%, some in the space have suggested that were it not for reserves and the benign loss environment, the majority of market players would likely already be in unprofitable territory.