Price corrections at the July renewals will be limited to loss-affected areas, according to a new report by rating agency Fitch.
The report predicted that it would take an insured loss of around $50bn to reduce capital levels throughout Fitch's monitored universe of reinsurers to such an extent that they would attempt to increase premium rates across their entire portfolios.
The agency also noted that a loss of this size would also ‘be likely to trigger a negative rating outlook for the reinsurance sector as a whole.’
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renewals, Fitch, price corrections