More risk-adjusted rate rises ‘unavoidable’

“Further risk-adjusted rate increases are unavoidable in some lines of business,” according to Sven Althoff, member of the executive board responsible for property and casualty reinsurance at  Hannover Re. His comments came as he discussed how the wider reinsurance industry is dealing with current market challenges and loss uncertainty.

He said re/insurers are facing considerable challenges, from geopolitical and social uncertainties to an accelerating pace of climate change. “Furthermore, we face higher inflation in general as well social inflation emanating from topics such as litigation finance in the US.