More rate increases needed for a sustainable reinsurance market - Swiss Re

Swiss Re | September 09, 2019

Swiss Re has published its outlook and projections for the current re/insurance market, suggesting that for the reinsurance market to remain sustainable, the upward trend in rates has to continue. In a release, Swiss Re reminded that with the hurricane season in full swing, it is important for re/insurers to have prices that sufficiently reflect the risks. The reinsurer also mentioned that it expects further rate increases for loss-affected and underperforming businesses – with broadly stable rates in other unaffected areas. The company gave this projection amid the reinsurance market’s abundant capital market. “The recent experience of hardening rates in reinsurance mainly reflects the response to higher loss occurrences and adverse trends in natural catastrophe markets and other affected segments,” commented Swiss Re Institute chairman and group chief underwriting officer Edouard Schmid. Swiss Re believes that the industry is rapidly undergoing change due to three factors: growing and increasingly complex risks; the wealth of data available to re/insurers; and a highly competitive market.

Spotlight

Canada’s P&C insurance sector has progressed for decades using business models and practices that have changed very little and reflect a world that no longer exists. Today, P&C insurers find themselves facing a perfect storm of change. Evolving consumer behavior intensifying competition and disruptive technologies are creating new business pressures. At the same time, climate change is playing havoc with insurers’ ability to predict losses from catastrophic events, and regulatory scrutiny and requirements are on the rise. Taken together, these factors are forcing P&C insurers to rethink how they secure competitive advantage and sustainable, long-term value in the years to come. In 10 years, we’ll see a radically different landscape in Canadian P&C Insurance.

Spotlight

Canada’s P&C insurance sector has progressed for decades using business models and practices that have changed very little and reflect a world that no longer exists. Today, P&C insurers find themselves facing a perfect storm of change. Evolving consumer behavior intensifying competition and disruptive technologies are creating new business pressures. At the same time, climate change is playing havoc with insurers’ ability to predict losses from catastrophic events, and regulatory scrutiny and requirements are on the rise. Taken together, these factors are forcing P&C insurers to rethink how they secure competitive advantage and sustainable, long-term value in the years to come. In 10 years, we’ll see a radically different landscape in Canadian P&C Insurance.

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