• 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

  • A Spinning Island Lake In Argentina Looms Out Of The Swamps Like An Eyeball
  • Mammals Have Evolved Into Ant Eaters 12 Times Since The Dinosaurs Went Extinct
  • Thieving Pulsar Spinning 592 Times A Second Reveals New Understanding Of Where Its X-Rays Come From
  • The Rise And Fall (And Lamentable Rise) Of The “Alpha Male” Myth
  • IFLScience The Big Questions: How Do Black Holes Shape The Universe?
  • North America’s Smallest Turtle Is The Cutest Thing You’ll Find In A Bog
  • “Unambiguous Signal” To Curb Emissions Now: Long-Lost Aerial Photos Reveal Evolution Of Antarctic Ice Shelf Collapse
  • 8 Children Have Been Born With 3 Biological Parents Each After Mitochondrial Transfer
  • First Known Observations Of Matter-Antimatter Asymmetry In Special Particle Decay
  • In 1973, NASA Sent Two Spiders Into Space To See If They Can Spin Webs – And They Learnt A Lot
  • Meet The Many Species Of Freaky Looking “Assassin Spiders” That Only Eat Other Spiders
  • Your Dog’s TV Preferences Might Reveal Their Personality
  • Some Human Gut Bacteria Can Absorb Harmful Toxic “Forever Chemicals” So They Can Be Pooped Out
  • You Could Float Through 10 Countries Before The World’s Most International River Spat You Out
  • Enormous Coronal Hole And Beast-Like Crawling Prominences Dazzle On The Active Sun
  • Dramatic Drone Footage Of Iceland’s Latest Volcanic Eruption Shows An Epic Scene From Hell
  • A Shrimp That Lives In A Tree? Indonesia’s Cyclops Mountains Are Home To Some Seriously Strange Wildlife
  • Is NASA’s Claim That Saturn Could Float On Water Really True?
  • Pangea Proxima: This Is What Planet Earth May Look Like 250 Million Years In The Future
  • The Story Of Dogxim, The Fox-Dog Hybrid That Shouldn’t Have Existed
  • 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