From: Captive International
Reinsurance’s hard market is likely to last for at least another two years if underwriting discipline is maintained.
That’s according to ratings agency AM Best in in its latest segment report on the global reinsurance sector.
The report, entitled Strong Technical Profits Bolster Momentum for Global Reinsurers, said reinsurers were more focused on providing capital protection than stabilising cedents’ earnings, adding current claims activity was being driven by elevated medium-sized events than by single large-scale events.
AM Best also said it expected strong pricing conditions to last longer than in past cycles, in part because of the lack of new entrants into the market – a feature of past hard markets.
The report comes after AM Best raised its outlook for reinsurance earlier this year to positive from stable for the first time in its history.
