16/11/2017
Munich Re says January renewal rates could be higher than 2011: report
Munich Re believes January 2018 renewal rate increases and future reinsurance rate renewals could be higher than those seen after the 2011 earthquake industry losses, Reinsurance News has reported.
Overall insurance and reinsurance losses may be lower than in 2011, but this year’s losses from hurricanes Harvey, Irma and Maria, as well as other events, could push rates up further, according to the report.
It quoted Munich Re as telling analysts that it believes the market-hardening will be greater than in 2011 because losses have fallen within peak risk zones for the reinsurance markets.
As a result, more market participants have been affected by the losses, including alternative capital providers, which raised the possibility of a greater capital hit, increasing the urgency to raise rates globally.
It quoted analysts from J.P. Morgan Cazenove as saying that as a result of this, Munich Re will be pushing for as hard a rate increase as it can get in renewals.
Source: WillisRe