Rate increases needed for stable market: Swiss ReSeptember 10 2019 by Andrew Tjaardstra
Swiss Re expects further rate increases for loss-affected and underperforming businesses and broadly stable rates in other areas, amid continued capital abundance in the market.
Further rate increases are needed to ensure a long-term stable market especially as it enters another potentially damaging hurricane and typhoon season.
Fast-paced change is creating challenges and opportunities for insurers and reinsurers, which are facing growing and ever-more complex risks, a wealth of data and a highly competitive market.
Swiss Re’s chief executive reinsurance Moses Ojeisekhoba said: “The industry is changing for a variety of reasons. We are confident that, with our continued focus on the needs of our clients, the scale and diversification of our business, and our risk knowledge and research and development capabilities, we are in the right strategic position to address change proactively.”
The reinsurer achieved profitable growth in its reinsurance business in the first half of 2019, underpinned by a strong increase in P&C treaty premium volume and price improvements. Nat cat business has been one of the main drivers of P&C growth for Swiss Re this year, while large transactions have been another growth area.
Edouard Schmid, chairman of Swiss Re Institute and group chief underwriting officer, commented: “The recent experience of hardening rates in reinsurance mainly reflects the response to higher loss occurrences and adverse trends in natural catastrophe markets and other affected segments.”
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