Traditional reinsurance sector remained profitable in 2017
16-04-2018
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Alternative capital has reloaded after the major nat cat events in 2017 and is in good shape to compete for cedants with the traditional reinsurance players and cause further pressure on rates, as recent market reports by Aon Benfield and Fitch Ratings suggest.
Traditional reinsurers have been complaining for a while that rates are unsustainably low. Overcapacity in the market is often blamed, driven by the growth of alternative capital. But alternative capital has emerged strong after the 2017 hurricane season, and traditional reinsurers are also in good shape for the upcoming renewal negotiations. A combination, that does not bode well for the desired improvements in rates.
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Alternative Capital, Insurance, Reinsurance, Aon Benfield, Fitch Ratings, Rates, Capacity, North America, Global
