(Bloomberg) — Property and casualty reinsurance prices declined on policies renewed for April 1 amid an oversupply of capital and muted demand from clients, according to Willis Re.
"It's a pretty difficult situation for reinsurers," James Vickers, chairman of broker Willis Re's international reinsurance unit, said in an interview. "The trend seen at the Jan. 1 renewals is continuing with no sign of any let-up."
The rates reinsurers charge customers are under pressure as low interest rates drive capital market investors, such as pension funds searching for above-average returns, into their market. Below-average catastrophe claims have also left the industry, which shoulders risks for primary insurers in return for a share of the premiums, with abundant funds.
"It remains a buyers' market, there is too much capacity from all areas," Vickers said. "I can't see anything on the horizon that would suggest a change in the trend this year."
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