(Bloomberg) — Capital available for reinsurance coverage hit a record $575 billion at the end of the third quarter, placing pressure on prices, according to broker Aon Benfield.
Capital rose 6.5% from $540 billion at the end of 2013, the reinsurance brokerage unit of London-based Aon Plc said in a report today. Alternative capital from sources such as pension funds, which compete with reinsurers such as Munich Re, Swiss Re AG and Hannover Re, rose 25% to a record $62 billion in the period.
"The price of traditional reinsurance, particularly property-catastrophe reinsurance has fallen in response to disruptive alternative capital that has grown in influence to become a price maker rather than a price taker," Aon Benfield said in the report.
Continue Reading for Free
Register and gain access to:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
