NU Online News Service, Jan. 9, 12:48 p.m. EST

The global reinsurance industry seems “poised for a turn,” as multiple factors are increasing the demand for reinsurance, but the short memory of the insurance industry could cause soft-market pricing to return in a hurry as the sting of recent losses fades, according to A.M. Best.

In a Reinsurance market briefing, Oldwick, N.J.-based Best says, “Over the past five years, reinsurers generally experienced declining demand for reinsurance capacity primary companies increased retentions across the board.” Recent global catastrophes, volatility of assets, and catastrophe-model changes, though, have conspired to change primary companies' perception of risk, which has increased demand for reinsurance, Best adds.

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