Global reinsurance outlook negative despite hardening – Moody's


Ratings agency Moody's has changed its outlook of the global reinsurance sector to negative from stable, citing numerous challenges, mainly weakening profitability amid the ongoing pandemic, that outweighs the benefits of higher pricing. Coronavirus-related losses and other catastrophe events have already depleted the annual catastrophe loss budgets of many firms. On top of that the reinsurance sector faces challenges including low interest rates, shrinking reserve releases and uncertainty around ultimate pandemic-related losses. Moody's said that despite stronger reinsurance pricing, the operating environment for the reinsurance sector will be challenging over the next 12 to 18 months. Although losses associated with economic shutdowns that began in March, primarily arising from event cancellation, property (with affirmative business interruption), travel and accident and health coverages, are likely to be fairly clear at this point, reinsurers will take...

Moody's, Global reinsurance sector, Insurance, Reinsurance, Ratings, James Eck, Global

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