2023-09-10 12:26:03
The world’s largest reinsurer Munich Re expects demand for reinsurance protection to continue to rise despite price increases in property and casualty business. The global reinsurance market will grow slightly every year from 2023 to 2025, even after deducting inflation, the DAX group announced on Sunday at the annual industry meeting in Monte Carlo.
The board warned that inflation would continue to be high, which would also drive up the costs of insurance claims. In addition, the destruction caused by severe thunderstorms with tornadoes and hail is now as expensive for the industry as a strong hurricane.
At the traditional “Rendez-Vous de September”, reinsurers such as Munich Re, Swiss Re and Hannover Re in the Principality of Monaco have been exploring the prices and conditions for contract renewal at the turn of the year with primary insurers such as Allianz and Axa since this Saturday. In the previous rounds of renewals, reinsurers had already significantly increased prices for their customers.
The industry demands so much more, especially when it comes to assuming risks from natural disasters and other natural hazards, that, according to a survey by the rating agency Moody’s, around nine out of ten primary insurers no longer want to pass on any additional risks to reinsurers in the coming year. As a result, primary insurers are likely to bear a larger share of future losses, concludes Moody’s analyst Helena Kingsley-Tomkins.
The rating agency Standard & Poor’s (S&P), like Munich Re, expects demand for reinsurance protection to continue to rise. Their experts also justify this with increasing damage from natural disasters, including the forest fires in Hawaii and southern Europe and the severe floods in Slovenia and Austria.
Because of the sharp rise in inflation, losses for primary insurers and reinsurers are becoming more and more expensive, even without an increase in natural catastrophes. For this reason alone, reinsurers are trying to impose higher premiums on their customers. S&P analyst Johannes Bender expects them to succeed. “But we are not sure whether the price increases are enough to offset inflation,” he said on Sunday in Monte Carlo.
1694349395
#Munich #expects #demand #reinsurance