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.
Capital build-up could undermine pricing discipline: BofA
21st April 2022
Analysts at Bank of America (BofA) have warned that a build-up of capital in the reinsurance industry could begin to undermine pricing discipline over time. BofA noted that capital is building in both the traditional and insurance-linked securities (ILS) sections of the reinsurance industry, and expressed concern over a possible knock-on ... Read the full article
Fitch predicts P&C profit improvement on pricing, auto results
13th April 2022
Continued favourable commercial lines pricing and stabilization in personal auto results are expected to lead to 2022 underwriting and profit improvement for US property casualty (P&C) insurers, according to analysts at Fitch Ratings. In contrast the rating agency believes that surplus growth is likely to diminish significantly relative to the past ... Read the full article
Aircraft lessors face huge insurance cost rise: reports
8th April 2022
With insurers and reinsurers still bracing for potentially historic aviation losses from the conflict between Russia and Ukraine, reports suggest that aircraft lessors are already seeing huge hikes in the cost of their coverage. Quoting the Chief Executive of major lessor BOC Aviation Ltd this week, Reuters has reported that aviation ... Read the full article
Pricing pressure faded at nuanced Japan renewals: Gallagher Re
8th April 2022
Analysts at Gallagher Re have reported that continued reinsurer pricing pressure faded during the course of the April 1 renewals in Japan, which was characterised by an “orderly” process with nuanced pricing dynamics. For property catastrophe excess of loss business in Japan, Gallagher Re reported that a limited amount of new ... Read the full article
Rate growth maintained at 6% through Q1: MarketScout
7th April 2022
The composite rate increase across insurance and reinsurance lines across the first quarter of 2022 was 6%, according to data from US electronic insurance exchange and specialty MGA MarketScout shows. The figure represented a slight increase over growth of 5.8% for the fourth quarter, as re/insurers continued to assess rate increases ... Read the full article
Non-life reinsurers experiencing strong pricing momentum: AM Best
6th April 2022
Rating agency AM Best has reported that non-life reinsurers are experiencing their strongest pricing momentum in recent history, despite new market entrants, robust capitalisation, and further alignment with third-party capital providers' interests. While AM Best anticipates continued pricing improvement throughout 2022, the impact on overall premium may be more complex to ... Read the full article
Pricing must remain favourable to outstrip inflation: Gallagher Re
29th March 2022
Analysts at reinsurance broker Gallagher Re have contended that pricing and terms need to remain favourable in order for re/insurers to maintain or grow margins in 2022 and 2023. Reflecting on recent conference calls, the broker noted that inflation remains one of the most widely discussed themes among senior executives. Last year, ... Read the full article
Hard market conditions diminishing but still sufficient: Fitch
22nd March 2022
Looking at the earnings of the major European reinsurers, analysts at Fitch Ratings have said that the hardening market conditions are diminishing but still remain strong enough to counterbalance rising risks from economic inflation and financial market volatility. Hannover Re, Munich Re, SCOR and Swiss Re all ... Read the full article
US commercial prices up 7% through Q4: WTW
10th March 2022
U.S. commercial insurance prices rose again in the fourth quarter of 2021, according to WTW’s latest Commercial Lines Insurance Pricing Survey (CLIPS), with the aggregate commercial price change measured at 7%. The survey compared prices charged on policies underwritten during the fourth quarter of 2021 with those charged for the same ... Read the full article
Goldman Sachs forecasts reinsurance hardening through to 2024
16th February 2022
Analysts at Goldman Sachs have forecast that a combination of higher underlying general inflation and the impact of climate change will drive a further hardening of the reinsurance market through 2022 to 2024, with ROEs improving to or above their targeted range. The firms notes that the reinsurance cycle has lagged ... Read the full article
January marks decrease for most premium renewal rates: IVANS
15th February 2022
IVANS, a division of Applied Systems, has released the January results of its insurance premium renewal rate index, which show a majority of commercial lines of business experienced a decrease in average premium renewal rates, compared with the previous month. Month over month, premium renewal rates increased for lines of business ... Read the full article
Hardening market causing capacity concerns for MGAs: AM Best
15th February 2022
Analysts at AM Best have warned that hardening underwriting conditions and reduced availability of underwriting capacity are posing challenges for UK Managing General Agents (MGAs). The rating agency sees MGAs with profitable records, niche business, or strong technology integration as being best positioned to navigate these difficult conditions. Accessing financially secure capacity ... Read the full article
Re/insurance pricing to remain ahead of loss cost inflation: JP Morgan
9th February 2022
Analysts at JP Morgan remain confident that the overall P&C pricing environment should remain positive for P&C (re)insurers in 2022, providing attractive growth opportunities and remaining ahead of loss cost inflation. In particular, reinsurance pricing should be buoyed by another year of substantial losses and continued weak sub-sector ROE, JP Morgan ... Read the full article
Marsh Index shows commercial rates up 13% through Q4
4th February 2022
Global commercial insurance prices increased 13% in the fourth quarter of 2021, according to the latest Global Insurance Market Index released by re/insurance broker Marsh. Analysts noted that Q4 saw a continuation of the trend of moderating rate increases that began in the first quarter of last year. While this is the ... Read the full article
Premium renewal rates reached new high in December: IVANS
4th February 2022
IVANS, a division of Applied Systems, has released the Q4 and full-year results of its insurance premium renewal rate index, which show that premium renewal rates for most major commercial products reached new highs in December. The fourth quarter results showed an increase in the average premium renewal rate change across ... Read the full article