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In order to protect margins in the current low interest rate and soft market environment, QBE is determined to fend off brokers’ demand for fee increases, strengthen direct distribution and avoid business in the Lloyd’s market as this comes at higher cost.
These were some of the revelations made at a first-half results briefing in London on August 17.
“Rates are pretty competitive in most spaces and we don’t anticipate and we’re not planning for a significant change or improvement,” said Richard Pryce, CEO of QBE’s European operations.
Rate reductions in the reinsurance space have slowed, “that’s encouraging,” but “so long as you continue to have this imbalance in supply and demand then you’ll always have some pricing pressure,” Pryce said.