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.

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

Reinsurance to play “a larger role” in 2021 rate movements: RPS

29th January 2021

Analysts at Risk Placement Services (RPS), an MGA subsidiary of brokerage Arthur J. Gallagher, believe that reinsurance will “play a larger role in rates, capacity and terms” this year. While the impacts of the 2020 election and COVID-19 on the US economy remain uncertain, RPS is confident that the cost of ... Read the full article

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