Catastrophe reinsurance rates declined for the second year in a row. Price competition intensified as a result of abundant capital, lower than average catastrophe losses, and strong overall profitability. But, reinsurance rates are projected to decrease at a slower pace in 2009 than in 2008, as reinsurers face earnings pressure from a number of sources. According to the Guy ... Continue Reading »
World ROL Index
Under Pressure: Rate Drops Slowed by Asset Squeeze
Christopher Klein, Global Head of Business Intelligence Contact The next renewal period may be four months away, but it is uppermost in everyone’s mind across the (re)insurance industry. Without a crystal ball, it is impossible to predict the market’s exact trajectory, but several trends have become evident in 2008. Absent a mega-catastrophe, rates likely will continue to trend ... Continue Reading »
2008 Reinsurance Market Review: Near Misses Call for Caution
Cedents took advantage of a buyer’s market. Many 2008 renewals closed late as cedents held out for lower rates in the continuing soft market. Reinsurers were rewarded not only with lower rates, but often smaller lines. The absence of large catastrophe losses was a key factor in the softening of reinsurance markets. Barring large catastrophe losses in 2008, the downward drift in ... Continue Reading »
