Hannover Re Expects Higher Renewal Premiums in Germany; Stresses Technical Pricing at Baden Baden

E+S Rück, Hannover Re Group’s German subsidiary, expects to see premium growth in the German market for the upcoming treaty renewals on January 1, 2017. Along with motor insurance, growth will likely be driven in particular by homeowners’ comprehensive insurance, where premium increases are necessary on account of the unsatisfactory business development, according to the insurer.

“In view of the ongoing low interest rate environment the insurance industry will continue to be put to the test, which is why technical pricing is equally important for insurers and reinsurers alike,” Michael Pickel, a member of the company’s executive board, said at a press conference held during the reinsurance meeting in Baden-Baden.

With this in mind, the current low level of interest rates offers little room for concessions over insurance conditions, he said.

In the motor line, Pickdel said there is a need for premium adjustments given that results for the current year will at most break even owing to the higher average claims amount. E+S Rück therefore anticipates improvements in conditions for the treaty renewals as at January 1, 2017.

In natural perils business regional customer portfolios were significantly hit, above all by heavy rainfalls. “This will probably prompt some customers to adjust their reinsurance requirements, thereby further boosting demand for capacity,” Pickel said.

Growing demand for cyber policies should also have favorable implications for E+S Rück. The company sees further potential for reinsurance business as a result of the influence of fintechs on the insurance market.

For 2017, E+S Rück said it anticipates further business opportunities in Germany and considers itself well on track to maintaining its market share.

Source: Hannover Re

Topics Reinsurance Germany