• Email Us: [email protected]
  • Contact Us: +1 718 874 1545
  • Skip to main content
  • Skip to primary sidebar

Medical Market Report

  • Home
  • All Reports
  • About Us
  • Contact Us

Global reinsurance rates to keep rising next year – ratings agencies

September 7, 2021 by David Barret Leave a Comment

September 7, 2021

By Carolyn Cohn

LONDON (Reuters) -Global reinsurance rates are likely to continue rising next year after several years of increases, though the pace of increase may slow, ratings analysts said on Tuesday.

Reinsurance rates have been rising in the past few years after natural disasters such as hurricanes and wildfires, as well as from the impact of the COVID-19 pandemic.

“We expect this (price) trend to continue,” Moody’s insurance credit analyst Helena Kingsley-Tomkins told a media briefing, adding that she expects rate increases in the “low to mid-single digit” percentage range in 2022.

Reinsurance rates for sectors hit hard by recent losses such as cyber and property catastrophe could face “easily double-digit” rises next year, Robert Mazzuoli, director, insurance at Fitch told a separate briefing.

Insurers and reinsurers face the risk of future natural catastrophes, with climate change making them harder to predict. Moody’s said demand for insurance and reinsurance is also rising as the global economy recovers.

But strong competition in the sector could keep a lid on rate increases, analysts said.

Claims inflation means risk-adjusted, rather than nominal, reinsurance rates could remain flat, Mazzuoli added. Supply chain bottlenecks and rises in raw material prices have pushed up the cost of repairs.

Moody’s raised its outlook on global reinsurers to stable from negative on Tuesday, citing rising premium rates amid a global economic rebound. Fitch also said the outlook for the sector was improving due to higher prices, an economic rebound and lower pandemic-related losses.

Reinsurers share the burden of large losses, such as from hurricanes, with insurers, in return for part of the premium.

Insurance losses as a result of the pandemic have amounted to around $37 billion so far, Kingsley-Tomkins said, far below initial industry projections of as much as $100 billion.

The ratings agencies usually update their outlooks ahead of an annual reinsurance event in Monte Carlo each September. The event is taking place virtually this year.

Global property and casualty (P&C) insurance premiums are set to more than double to $4.3 trillion in 2040 from $1.8 trillion in 2020 as the sector shifts from lower-risk motor insurance towards higher-risk property and liability lines, the Swiss Re Institute forecast this week.

(Reporting by Carolyn Cohn; editing by Marc Jones, Susan Fenton and Dan Grebler)

Source Link Global reinsurance rates to keep rising next year – ratings agencies

David Barret
David Barret

Related posts:

  1. Best WordPress hosting of 2021
  2. Inflation shock and ECB hawks keep euro near 1-month high
  3. Soccer-Ronaldo claims world record with late late show
  4. U.N. warns catastrophe looms in Ethiopia’s north, urges government to end de facto aid blockade

Filed Under: News

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

  • If Birds Are Dinosaurs, Why Are None As Big As T. Rexes?
  • Psychologists Demonstrate Illusion That Could Be Screwing Up Our Perception Of Time
  • Why Are So Many Enormous Roman Shoes Being Discovered At Hadrian’s Wall?
  • Scientists Think They’ve Pinpointed Structural Differences In Psychopaths’ Brains
  • We’ve Found Our Third-Ever Interstellar Visitor, Orcas Filmed Kissing (With Tongues) In The Wild, And Much More This Week
  • The “Eyes Of Clavius” Will Be Visible On The Moon Today, Thanks To Clair-Obscur Effect
  • Shockingly High Microplastic Levels Found On Remote Mediterranean Coral Reef Island
  • Interstellar Object, Cheesy Nightmares, And Smooching Orcas
  • World’s Largest Martian Meteorite Up For Auction Could Reach Whopping $2-4 Million
  • Kimalu The Beluga Whale Undergoes Pioneering Surgery And Becomes First Beluga To Survive General Aesthetic
  • The 1986 Soviet Space Mission That’s Never Been Repeated: Mir To Salyut And Back Again
  • Grisly Incident In Yellowstone National Park Shows Just How Dangerous This Vibrant Wilderness Can Be
  • Out Of All Greenhouse Gas Emitters On Earth, One US Organization Takes The Biscuit
  • Overly Ambitious Adder Attempts To Eat Hare 10 Times Its Mass In Gnarly Video
  • How Fast Does A Spacecraft Need To Go To Escape The Solar System?
  • President Trump’s Cuts To USAID Could Result In A “Staggering” 14 Million Avoidable Deaths By 2030
  • Dzo: Hybrids Beasts That Are Perfectly Crafted For Life On Earth’s Highest Mountains
  • “Rarest Event Ever” Had A Half-Life 1 Trillion Times Longer Than The Age Of The Universe – How Did We See It?
  • Meet The Bille, A Self-Righting Tetrahedron That Nobody Was Sure Could Exist
  • Neurogenesis Confirmed: Adult Brains Really Do Make New Hippocampal Neurons
  • Business
  • Health
  • News
  • Science
  • Technology
  • +1 718 874 1545
  • +91 78878 22626
  • [email protected]
Office Address
Prudour Pvt. Ltd. 420 Lexington Avenue Suite 300 New York City, NY 10170.

Powered by Prudour Network

Copyrights © 2025 · Medical Market Report. All Rights Reserved.

Go to mobile version