Factors in the reinsurance marketplace point to continuedmoderate rate increases going forward, two reinsurers say as theannual Reinsurance Rendezvous kicks off in Monte Carlo.
In a statement outlining comments by company executives at themeeting, Swiss Re says competing factors are currently in playpulling the rate environment in different directions. “On the onehand, lower interest rates and higher solvency requirements pointto firmer pricing, while low inflation rates, reserve releases andexcess capital speak for lower prices,” Swiss Re says.
Swiss Re Chief Executive Officer, Reinsurance, ChristianMumenthaler, says the factors driving increases will likely win outin the near future. He says, “Upwards pressure on prices for(re)insurance is likely to rise, as low interest rates continue todepress running yields and drag return-on-equity levels down,significant reserve releases will not go on forever and solvencyrules are tightening all over the world.”
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