January 19th, 2010

Wide Range of Rate Changes at German Renewal

Posted at 12:00 PM ET

In an environment that was highly competitive, Germany experienced a wide range of average rate changes across lines, from a decline of 5 percent to an increase of 10 percent, with limited capacity in D&O lines pushing rates in those lines up an average of 15 percent. The market overall gained capacity from new and existing reinsurers while retention levels remained stable. Almost all lines of business experienced average loss activity in 2009 with an upwards tendency in the second half of the year. It is not yet clear if an increase in loss frequency in some property/casualty lines in the second half of 2009 may have been caused by the economic crisis. Final Solvency II capital requirements and increased consolidation among primary insurers may further influence retention levels and amounts of ceded premiums. The London market continued last year’s trend of greater participation in the German market.

Click here to register for e-mail updates >>

AddThis Feed Button
Bookmark and Share

Related Posts