While re/insurers continue to be impacted by surplus capacities and historically low interest, A report from Hannover Re notes how the industry has had an ”appreciably more pleasing turn in 2019.”
Particularly on the primary side, Hannover Re said broadly modest improvement can be observed across the industry and in some cases reflects in the reinsurance space.
Chief Executive Officer Jean-Jacques Henchoz described how in recent months Hannover Re have been able to secure initial price increases across the board.
“The renewed drop in interest rates and the considerable strains from large losses underscore the need for improved prices and conditions in the upcoming year’s renewal,” Henchoz added.
“Given the challenging market environment that we are still facing, we shall continue to keep a very close eye on price and risk adequacy and will put profitability before growth.”
Concurrently, Hannover Re can also see clear signs of underwriting discipline and that this is reflected in rising prices for primary insurance.
With the profitability of the sector coming under increasing pressure, technical discipline on the underwriting side remains the top priority.
Hannover re added that rates have tended to stabilise for loss-free covers, although in some areas they even moved higher. The overall picture was one of rates broadly commensurate with the risks.
The firm has also stated Rates have tended to stabilise for loss-free covers, although in some areas they even moved higher. The overall picture was one of rates broadly commensurate with the risks.