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.
Stable reinsurance outlook underpinned by pricing & capital: Moody’s
3rd September 2019
Rating agency Moody’s has maintained its stable outlook for the global reinsurance industry going into 2020, with strong capitalisation and rising prices offset by low interest rates and falling reserve releases. Analysts at the firm noted that reinsurers’ regulatory and economic capital has remained resilient thanks to increased use of retrocession, ... Read the full article
Low cat losses & improved pricing boost European reinsurers’ H1 results: Fitch
2nd September 2019
The big four European reinsurers reported solid underwriting performance during the first half of 2019, with results boosted by limited natural catastrophe losses and an improved pricing environment, according to Fitch Ratings. The rating agency pointed to growing momentum for positive premium rate development at the June/July renewals, as well as ... Read the full article
Moderate rate increases across most commercial P&C lines in Q2: CIAB
27th August 2019
The Council of Insurance Agents & Brokers (CIAB) has reported that premium pricing increased across all-sized commercial property and casualty (P&C) accounts in the second quarter of 2019. Similarly, all lines of business saw slight to moderate pricing increases during the quarter, with the exception of workers’ compensation. Commercial property and commercial ... Read the full article
Commercial carriers poised to benefit from continued rate improvements: JP Morgan
21st August 2019
Broad industry pricing improvements are expected to provide a tailwind to commercial carriers’ top-line growth and earnings, according to JP Morgan analyst Keith Cornelius. This is likely to be supported by year-on-year improvements in bet investment income, as well as a manageable quarter in terms of catastrophe activity. Cornelius believes that small ... Read the full article
Inadequate pricing & market disruption to push rate increases into 2020: Fitch
20th August 2019
Reinsurance rate increases are expected to continue into the 2020 renewals due to ongoing disruption in the market and inadequate pricing levels, according to Fitch Ratings. Fitch noted that reinsurance pricing turned decidedly positive at the mid-year 2019 renewals, following disappointing flat and generally stable rates at January. Momentum has largely been ... Read the full article
TWIA rate adequacy continues to slip in 2019, analysts report
26th July 2019
Analysis by the Texas Windstorm Insurance Association (TWIA) has concluded that its rates are currently inadequate by 41.7% for residential coverage and 50% for commercial coverage. This represents a significant increase from last year’s analysis, which found that rates were inadequate by 32% for residential coverage and 37% for commercial coverage. Since ... Read the full article
Iran tanker seizure could negatively impact premiums, says DWF
22nd July 2019
The recent seizure of a British-flagged oil tanker by Iran in the Persian Gulf could have a knock-on effect on global fuel prices and insurance premiums, according to analysts at global law firm DWF. The Stena Impero was captured by the Iranian Revolutionary Guard on Friday as it passed through a ... Read the full article
Reinsurance pricing thought to have increased 2-3% across lines at July renewals: Barclays
17th July 2019
Analysts at Barclays have reported evidence of reinsurance price hardening across geographies and lines of business at the recent July renewals, with rate increases likely to have averaged around 2-3%. The strongest pricing response is expected in loss-affected areas of the U.S and Asia, as well as in lines that saw ... Read the full article
Re/insurance pricing increases could hold for two years: Peel Hunt
5th July 2019
Underwriters are confident that re/insurance pricing increases will be sustainable regardless of the outcome of the 2019 hurricane season and should hold for two years, according to Peel Hunt. The firm observed that underwriters generally appear to be pleased with how the rate cycle is evolving, given the absence of knee-jerk ... Read the full article
Rising reinsurance costs pose major hurdle for Florida carriers: A.M. Best
4th July 2019
Rising reinsurance costs could pose a major hurdle for carriers in Florida, according to A.M. Best, potentially diminishing earnings and pushing companies into looking at more alternative risk transfer options. The rating agency noted that the cost benefit of doing business in the state has changed considerably in recent years due ... Read the full article
European reinsurers’ profitability hinges on adequate renewals pricing, says EIOPA
2nd July 2019
With competitive pressure still high, continued profitability in the European reinsurance sector will likely hinge on adequacy of risk pricing at the 2019 mid-year renewals. This is according to analysts from the European Insurance and Occupational Pension Authority (EIOPA), who assessed the financial stability of the industry in a new report. The ... Read the full article
Reinsurers see “tangible pricing momentum” at July renewals: Willis Re
1st July 2019
After a hesitant start to the year, reinsurers have experienced “tangible pricing momentum" at the mid-year renewals, according to Willis Re, although improvements are falling short of those seen in the primary markets. The broker’s 1st View report observed reinsurance pricing increases across most territories at the July renewals, with some ... Read the full article
July renewals to offer muted pricing increases for European reinsurers: Deutsche Bank
26th June 2019
European reinsurers can expect to see only muted pricing increases at the July 2019 renewals, which will likely offer a similar experience to renewals earlier in the year, according to analysts at Deutsche Bank. Nevertheless, the firm continues to see some positive signs in the market, such as pricing momentum from ... Read the full article
Flatter pricing cycle will help protect policyholders: Hannover Re’s Konrad Rentrup
24th June 2019
The flatter pricing cycle that reinsurers have experienced following recent catastrophe events will ultimately ensure that primary insurance policyholders continue to be provided with affordable and widely available coverage. This is according to Konrad Rentrup, President and CEO at Hannover Re Bermuda, who discussed the impact of recent pricing trends alongside ... Read the full article
Citizens to cap Florida rate increases at 4.7% following AOB reforms
19th June 2019
Citizens Property Insurance Corporation, the Florida state-run insurer, is seeking approval from its Board to cap its average premium rate increases at 4.7% following recent legislation designed to curtail assignment of benefits (AOB) abuse. If approved, the revised rate increases would be limited to nearly half the original 8.2% hikes ... Read the full article
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