Hannover Re subsidiary expects premium growth in German market

E+S Rück, a German business subsidiary of Hannover Re Group, expects to see premium growth in the German market for the upcoming treaty renewals.

E+S Rück believes this growth will likely be driven by homeowners’ comprehensive insurance, where premium increases are necessary on account of the unsatisfactory business development.

"In view of the ongoing low interest rate environment the insurance industry will continue to be put to the test, which is why technical pricing is equally important for insurers and reinsurers alike," said Michael Pickel, a member of the company's executive board
E+S Rück further believes that with this in mind, the current low level of interest rates offers little room for concessions over insurance conditions.

Pickel also identified that that the regional customer portfolios were significantly hit by natural perils, above all by heavy rainfalls.

"This will probably prompt some customers to adjust their reinsurance requirements, thereby further boosting demand for capacity", he explained.