E+S Rück forecasts growth in Germany
E+S Rück, which bears responsibility within the Hannover Re Group for German business, expects to see premium growth in the German market for the upcoming round of treaty renewals at January 1, 2018.
Along with improvements in motor insurance, prices for natural catastrophe covers should at least remain stable; rate increases are expected under loss-impacted programmes. The company expects to book additional premium income from the trending sectors of cyber and telematics, where the rising demand already seen in other markets is now making itself felt in Germany.
“When it comes to pricing risk-oriented covers the low interest rate level continues to be a major factor, especially for longer-tail casualty business, with the result that premium adjustments are needed in most instances,” Michael Pickel, a member of the company’s executive board, emphasised at a press conference in Baden-Baden.
“In view of the rising cost of all material claim items in motor third party liability insurance, we anticipate improvements in conditions for the upcoming treaty renewals,” he said.
In light of the increasing prevalence of natural disasters, covers for extended natural perils are consistently growing in importance. In 2016, for example, severe weather events involving heavy rainfall caused insured losses almost 10 times higher than in the previous year.
With this in mind, ceding companies are likely to review their reinsurance needs, and hence rising demand for catastrophe covers can be anticipated.
The growth in demand for cyber policies should similarly have favourable implications for E+S Rück. In cooperation with the startup Perseus, the company offers German small and medium sized enterprises a service platform for cybersecurity solutions and risk management.
E+S Rück is also collaborating with Vodafone on a pilot project to offer German motor insurers convenient access to the field of telematics. The aim is to standardise the framework contractual conditions for a telematics product in order to make their application straightforward and cost-effective for insurers.
“Through our involvement in this project we are seeking to expand the existing range of services offered to our customers. As the largest German motor reinsurer, we intend to partner with our clients on new products going forward, as we have in the past”, Pickel added.
E+S Rück is looking forward to further business opportunities in Germany for 2018 and considers itself well on track to maintain its market share on a high level.
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