Morgan Stanley: Reinsurers confident of further rate increases
Friday, 09 20 2019, Category: Insurance and Reinsurance, Country: World
Reinsurers largely seem confident that the pricing momentum built over 2019 will continue into 2020 as the industry pushes for more sustainable margins, according to analysts at Morgan Stanley.
Morgan Stanley’s analysis was based on its conversations with reinsurers at the Rendezvous event in Monte Carlo this year, who mostly seemed optimistic about the prospect of further rate increases next year.
Pricing in US casualty lines in particular should continue to improve, analysts reported, reflecting rising losses, lower reserve releases and investment yields, and a retrenchment by large players.
In loss-affected geographies, rates have improved by up to 25% at the renewals in 2019, with loss free accounts remaining relatively flat.
Source:
reinsurancene.ws