The re/insurance market is hardening, that is now a given. During virtual Monte Carlo 2020, industry professionals shared their thoughts on how this hardening market will play out and how the impacts of COVID-19 will feed into this ever shifting picture.
“We still think that loss costs, while increasing, won’t be increasing as fast as the premium rates going into next year.” Brian Schneider, senior director at Fitch Ratings.
· Higher rates ahead of January renewals "speaks well" for future profitability
· Prices need to rise a lot further to offset potentially volatile results
· Reinsurers choose to focus on existing clients rather than new business
· Excitement as new capital, particularly in new vehicles, enters market
The global pandemic has sparked major change across many industries. Reinsurers are embracing this as the market continues to harden.
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