Rate increases will be biggest talking point
The potential for hardening rates and terms and conditions (T&C) will be the main talking point at the Baden-Baden 2017 Reinsurance Symposium, according to an online survey carried out by Intelligent Insurer.
Some 58 percent of respondents identified rates as the main talking point, with many highlighting the fact that following cat losses this year, they expect to see a hardening of rates in the 1/1 renewals.
“The impact of Harvey, Irma and Maria and other cat events on market capacity, rate levels, and T&C heading into 2018 will be the main talking points,” noted one respondent.
In particular, industry insiders are speculating about the impact of US cat losses not only on US rates but also on rates in the broader international market.
Thirty-three percent of respondents said the challenges of growth for the industry would be the hot topic. One added:
“Basically, it is always about growth, whether by market share (for example, reducing rates), regulatory arbitrage, M&A, or alternative channels.”
The other 9 percent said the main talking point would be alternative capacity and its effect on the market. In particular, observers are watching with interest to see how alternative capacity reacts to the recent US nat cat losses. This has been described as “a wake-up call” by some and it is broadly seen as the first big test of alternative capital’s tolerance of large losses.
What will be the main talking points in Baden-Baden this year?
Softening rates and terms and conditions 58%
The challenges of growth for the industry 33%
Alternative capacity and its effect on the market 9%
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