Rate increases unlikely to stick without above-average losses
Thursday, 06 06 2019, Category: Insurance and Reinsurance, Country: World
Reinsurance rate increases secured so far in 2019 are unlikely to persist through to the June 2020 renewals unless we see another above-average catastrophe loss year in 2019, analysts at Goldman Sachs believe.
Reinsurance rate rises achieved this June won’t prove sticky without further natural catastrophe losses affecting the United States, or a major event that impacts the market’s capacity striking elsewhere in the world.
But the shorter-term horizon prospects look better, the analysts at Goldman Sachs say, as they do feel that upwards rate pressure in reinsurance and in retrocession can hold on through to the April 2020 renewal seasons.