(Bloomberg) -- The world’s largest reinsurers are anticipatingeven bigger price declines when policies are renewed in 2016 thanenvisaged a month ago as a flurry of takeovers in the industryfails to absorb some of the excess capital.
Reinsurers and brokers including Guy Carpenter, owned by Marsh& McLennan Cos., flew into the German town of Baden-Baden thisweekend to continue negotiating terms and conditions for contractsdue for renewal in January. It follows discussions that were heldin Monte Carlo in September, which suggested the price slump may beslowing.
“In Monte Carlo, we were certainly suggesting that ratereductions will be in the region of between 5 to 7.5 percent tomaybe 10 percent,” said Nick Frankland, chief executive officer ofGuy Carpenter’s operations in Europe and the Middle East. “They maybe more than that. The market is struggling to understand how toquote in this environment.”
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