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.

WTW predicts return to soft cycle as rates decelerate

23rd April 2021

Analysts at Willis Towers Watson (WTW) have said the cyclical nature of pricing in the re/insurance market is set to be “proven again” as prices look ready to decelerate over the coming months. A new report by the broker noted that property rate increases have not been as steep as many ... Read the full article

Instability forecast for motor & home pricing until 2023: Pearson Ham

20th April 2021

Impending action by the FCA on pricing practices, combined with the post lockdown impact on claims, will herald a period of price fluctuation for motor and home lines as insurers adapt their business models to address issues such as ‘price walking’, according to analysts at Pearson Ham. Data from the firm’s ... Read the full article

Morgan Stanley expects “sustained” reinsurance pricing ahead of renewals

19th April 2021

Analysts at Morgan Stanley are expecting reinsurance rate increases to prove more sustainable as they examine pricing trends ahead of the mid-year renewals. Though discussions of pricing at Jan 1 and Apr 1 renewals have been characterized as slightly disappointing, Morgan Stanley noted that pricing was generally up across the board ... Read the full article

Commercial pricing close to peak levels: KBW

13th April 2021

Analysts at KBW believe that commercial insurance lines pricing has been “close to peak levels” during the first quarter of 2021, with plateauing and very modest deceleration expected as the year continues. This could entail slightly smaller rate increases that still remain above loss trends, KBW explained. Analysts added that specialty commercial ... Read the full article

Re/insurers achieve premium growth despite COVID challenges: Willis Re

25th March 2021

A new report from broker Willis Re shows that, globally, re/insurers achieved mild premium growth over 2020 due to rate increases for reinsurance and commercial lines of business. Most lines of business in the US market reversed Q2 declines in premiums and US premiums over the year actually outpaced GDP growth, ... Read the full article

Commercial insurance prices up 10% over Q4: WTW

10th March 2021

New data from re/insurance broker Willis Towers Watson (WTW) shows that US commercial insurance prices grew by a substantial 10% over the fourth quarter of 2020. This was the largest quarterly increase recorded so far by WTW’s Commercial Lines Insurance Pricing Survey (CLIPS), which began in 2003. Data for nearly all lines ... Read the full article

Uri losses to sustain reinsurance rates through mid-year: KBW

3rd March 2021

Analysts at KBW have reported that the industry expects losses from Winter Storm Uri to sustain property catastrophe reinsurance rate increases through the mid-year renewals period. According to KBW, most re/insurance executives view a $10 billion to $20 billion loss range as reasonable for Uri, which has brought damaging ice damaging ... Read the full article

Capital inflows could dampen positive pricing momentum, says A.M. Best

26th February 2021

The inflow of new capital into the industry on the back of improving market conditions could have a detrimental effect on price improvements, although a number of "moving parts" could also have an influence, according to analysis by A.M. Best. The combination of heavy catastrophe loss years, the lower for longer ... Read the full article

January shows fluctuations in commercial lines rates: IVANS

26th February 2021

Commercial lines premium renewal rates fluctuated over the month of January, according to the latest results of the IVANS Index. IVANS, a division of Applied Systems, reported that all major lines of business showed an increase in average premium renewal rate year-over-year in January. This is with the exception of Workers’ Compensation, ... Read the full article

Reinsurance rates not yet in line with risks: Moody’s

25th February 2021

Analysts at Moody’s are predicting that reinsurance rates will continue to rise significantly throughout 2021, on the basis that operating returns are not compensating reinsurers for the risks they assume. While the January renewals did yield some positive pricing trends for reinsurers, rates are still remain well below levels seen in ... Read the full article

2020 losses overshadow reinsurance pricing gains: Moody’s

23rd February 2021

Reinsurers have reported “lackluster” results for 2020, according to analysts at Moody’s, who argue that the catastrophe and COVID-19 losses incurred last year overshadowed pricing gains. For the full year, Moody’s noted that reinsurers’ combined ratios were generally in the 102% to 110% range, even as investment gains helped to lift ... Read the full article

Home & motor rates to fall through 2021, says PwC

19th February 2021

Analysts at PwC believe that home and motor insurance prices in the UK are likely to fall through 2021 in response to changing regulations and the ongoing COVID-19 pandemic. In combination with growing levels of competition, PwC believes motor premiums could fall by 5-10% this year, while home insurance premiums could ... Read the full article

Selective says reinsurance costs outpacing primary rate increases

15th February 2021

Selective Insurance has reported that its reinsurance renewal prices at January 1 were in some cases higher than it expects to generate on the underlying insurance policies it sells. The company warns that the accelerating cost of reinsurance will likely impact its underwriting profitability over 2021, At the same time, it has ... Read the full article

Commercial insurance prices up 22% in Q4: Marsh

4th February 2021

New data from broker Marsh shows that global commercial insurance prices increased by 22% in the fourth quarter of 2020. The increase was the largest recorded since Marsh first released its Global Insurance Market Index in 2012, and follows year-on-year average increases of 20% in the third quarter of 2020 and ... Read the full article

January renewals were in-line with expectations, says RBC

3rd February 2021

Analysts at RBC Capital Markets have maintained that the January 1 reinsurance renewals were “in-line” with expectations, despite reports that pricing increases were more muted than many had hoped. “In all our time looking at and working in the sector, we cannot think of a time when the January reinsurance renewals ... Read the full article