Advertise here, Reinsurance News


Reinsurance News

Downward property cat pricing pressure expected at Jan renewals: Morgan Stanley

13th September 2018 - Author: Charlie Wood

Meetings at the recent Monte Carlo Reinsurance Rendez-Vous suggest downward property catastrophe pricing pressure of flat to -5% at the 2019 January renewals, reports Morgan Stanley.

Reinsurance renewalsFurthermore, as signified by Markel’s acquisition of Nephila, traditional and alternative capital are converging and industry consolidation should continue as global reinsurers adapt to the changing competitive landscape.

After record insured losses of more than $140 billion from 2017 catastrophes, the market saw a small rebound in 2018.

Morgan Stanley believes that, absent of large losses, property cat repricing will resume a modest decline. However, should the fast-approaching Hurricane Florence inflict damages equivalent to 1989’s Hugo or 1954’s Hazel, its could support pricing on the margin.

In general, Morgan Stanley says it would take large catastrophes totalling $200 billion or significant unexpected losses to turn pricing meaningfully; a conclusion that supports the findings of our recent industry survey.

There are some positive signs that primary carriers are purchasing more reinsurance, partly
due to attractive pricing and the heightened risks of aggregate losses from multiple events.

Among some insurers under Morgan Stanley’s coverage, the net to gross ratio declined in 2017
and H1 18 after years of increases.

Casualty reinsurance pricing is largely stable, with modest increases in proportional business as primary insurance pricing rises.

Recent Reinsurance News

Getting your daily reinsurance news from Reinsurance News is a simple way to receive only the reinsurance industry news that matters, delivered directly to your email inbox.

  • Only email is mandatory, but the more you tell us about yourself the better we can serve you in future!
  • This field is for validation purposes and should be left unchanged.

By submitting the form you are giving your consent to be emailed by us.

Read previous article:
Simplitium appoints Head of Insurance Product Development

Simplitium, a global financial services technology provider and wholly owned subsidiary of Cinnober Financial Technology, has appointed Matthew Jones as...