Reinsurance rates to decline in 2018
Wednesday, 09 06 2017, Category: Insurance and Reinsurance, Country: World
Reinsurance rates are set to continue to decline in 2018 as growth in alternative forms of reinsurance intensifies the competition for business, Fitch Ratings said on Sept. 5.
This competition will mainly be driven by the collateralised reinsurance segment, where funds are likely to expand their reinsurance capacity at lower pricing margins. Market conditions for catastrophe bond issuance are also likely to remain favourable in 2018 as investors seek to diversify risks.
Declining rates, paired with low investment yields are set to further increase pressure on reinsurers’ profits in 2018, according to Fitch.
Source: Intelligent Insurer