Reinsurance News
Insurance and reinsurance pricing news
News on pricing in global insurance and reinsurance markets, with a particular focus on renewal rates on line in reinsurance and commercial insurance pricing trends.
Renewal rates variable across 2020: IVANS Index
28th January 2021
IVANS, a division of Applied Systems, has reported that average premium renewal rate changes across 2020 were “variable” for all lines of business when compared with the previous year. The Q4 results of the IVANS Index show an increase in the premium renewal rate change average across General Liability, Commercial Property, ... Read the full article
Insurance prices up 10% across Q3, finds WTW
7th December 2020
US commercial insurance prices grew significantly over the third quarter of 2020, according to Willis Towers Watson (WTW), with carriers reporting aggregate price changes of nearly 10%. The broker’s Commercial Lines Insurance Pricing Survey (CLIPS) found that price changes for nearly every line were consistent with the increases from the prior ... Read the full article
Jefferies forecasts multi-year reinsurance price increases
23rd November 2020
Analysts at financial services company Jefferies have forecast that reinsurance rate rises could continue beyond the 2021 renewals, leading to multi-year increases. “With the 2021 reinsurance renewals approaching, we expect prices to rise materially, and, as conditions in 2020 are reminiscent of 2001, multi-year rises may be possible,” analysts said. The firm ... Read the full article
IVANS reports softening in October premium rates
11th November 2020
Most commercial lines premium renewal rates continued to show upward growth year-on-year, according to the October results of the IVANS Index, a division of Applied Systems. However, compared to previous months this year, IVANS noted a slight softening of premium renewal averages in October. For instance, Commercial Auto lines saw premium renewal ... Read the full article
Reinsurance pricing “approaching adequacy,” says AXIS CEO Benchimol
5th November 2020
Albert Benchimol, President and CEO of Bermudian re/insurer AXIS Capital, has said he believes reinsurance pricing is “approaching adequacy” but that more rate action is needed beyond 2021 in some areas. Speaking in an earnings call alongside the release of AXIS’ Q3 results, Benchimol offered his perspective on the current ... Read the full article
“Reinsurance is in a state of flux”: Willis Re’s James Vickers
23rd October 2020
On the back of several years of unsatisfactory returns and the added challenges of COVID-19, Willis Re’s James Vickers has said that the reinsurance market finds itself “in a state of flux.” Vickers, who is Chair of Willis Re International, recently spoke to Reinsurance News about the state of the reinsurance ... Read the full article
Average premium renewal rates up through Q3: IVANS
21st October 2020
Average premium renewal rates continued to harden across nearly all major commercial lines of business during the third quarter of 2020, according to the results of the IVANS Index, a division of Applied Systems. Q3 results showed an increase in premium renewal rate change average across nearly all major commercial lines ... Read the full article
Commercial property rates up 7% in Q3: MarketScout
8th October 2020
Commercial property rates increased by 7% during the third quarter of 2020, according to data from MarketScout, the US electronic insurance exchange and specialty MGA. The firm found that re/insurance rates increased by 6.25% on average in Q3, with rate increases on every line of coverage and industry class. The largest rate ... Read the full article
Morgan Stanley expects reinsurer earnings quality to improve
25th September 2020
Analysts at Morgan Stanley have said they expect to see the reinsurance industry’s earnings quality improve alongside continued pricing increases. Based on its conversation with reinsurers around the virtual Monte Carlo event this year, the firm said that rate momentum will likely continue throughout 2021 and potentially beyond. And while margin expansion ... Read the full article
FCA proposes measures to tackle unfair insurance pricing
22nd September 2020
UK regulator the Financial Conduct Authority (FCA) has proposed a set of measures designed to tackle unfair pricing practices for customers renewing their retail home and motor insurance policies. The proposals follow on from the FCA’s October 2019 report, which found that 6 million policyholders paid high prices in 2018, ... Read the full article
This is the market we’ve been waiting for: Hamilton Re’s David Brown
22nd September 2020
With rates now on a trajectory towards hard market territory, Hamilton Re Chairman and interim CEO David Brown says the company is seeing opportunity across specialty insurance and reinsurance business. Speaking in an interview with Reinsurance News, Brown said he was confident about Hamilton Re’s prospects following its takeover of Pembroke ... Read the full article
Cat losses to exceed 2019 levels, boost reinsurance pricing: KBRA
21st September 2020
Analysts at Kroll Bond Rating Agency (KBRA) believe this year’s active hurricane season, along with growing costs of the US wildfires and the COVID-19 pandemic, will cause insured catastrophe losses to exceed 2019 levels. The result of this elevated catastrophe bill will be further upward pressure on reinsurance pricing, KBRA said, ... Read the full article
Reinsurance price increases “absolutely essential” in 2021: Hannover Re
14th September 2020
Against the backdrop of ongoing COVID-19 losses and a low interest rate environment, Hannover Re has argued that continued reinsurance rate increases are “absolutely essential” next year. In a new release that was planned for this year’s cancelled Monte Carlo meet-up, Hannover Re says it anticipates “significant price increases” spanning the ... Read the full article
P&C reinsurance buyers expecting 5% price rise off COVID-19, nat cat losses: Moody’s
11th September 2020
Respondents to a Moody’s survey of P&C reinsurance buyers are expecting reinsurance prices to rise by at least 5% next year. Reinsurers' profitability is generally anticipated to take a hit from factors such as COVID-19, more volatile natural catastrophe losses and capacity constraints. Over 90% of respondents had an expectation for price ... Read the full article
Commercial rate hardening continues in August: IVANS
10th September 2020
Average premium renewal rates continued to harden across nearly all major commercial lines of business during the month of August 2020, according to the results of the IVANS Index, a division of Applied Systems. Year over year, all lines of business experienced an increase in average premium renewal rate, except Workers’ ... Read the full article
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