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

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.