Reinsurance Round-Up

Reinsurance executives gathered in Monte Carlo this week for the sector’s annual September Rendezvous coinciding with the publication of several commentaries on the state of the reinsurance market. Among them, Swiss Re noted that reinsurers are facing a more challenging environment amid continuing soft market conditions, stock market turbulence and an active hurricane season. Disciplined underwriting has to be the continuing focus, it said. Underwriting discipline and consistent cycle management was also the message from Munich Re. Noting that a difficult capital market environment and higher losses can accelerate a turnaround in the cycle, Munich Re said it will continue to maintain its underwriting discipline at every stage of the cycle. Meanwhile, brokers focused on the issue of price. Aon Re Global said it expects the January 1, 2009 renewals to reflect a slower rate of decline in reinsurance pricing due to the credit and liquidity crisis, provided there are no significant catastrophe losses. In its annual report on the property catastrophe market, Guy Carpenter noted that catastrophe reinsurance rates were declining for a second consecutive year, with price competition intensifying as a result of abundant capital, relatively low catastrophe losses and strong profitability. However, continued volatility in the investment markets may help to underpin the necessity for sound underwriting and steady the decline in pricing as the market heads towards Jan 1 renewals, it said. Check out further I.I.I. information on reinsurance.  

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