Forward thinking by S&P in their projected rating actions is partly driven by their ability to now better monitor and compare actual reinsurance price levels to stated price goals of global reinsurers. Regarding ‘technical pricing’ guidelines reinsurers say they will follow, advanced tools to monitor competition may justify S&P’s recent concerns. Also, competition in the global reinsurance market should not be narrowly interpreted to include only 23 reinsurers; i.e. cat bonds and other ILS’s are an important segment of the market.
Forward thinking by S&P in their projected rating actions is partly driven by their ability to now better monitor and compare actual reinsurance price levels to stated price goals of global reinsurers. Regarding ‘technical pricing’ guidelines reinsurers say they will follow, advanced tools to monitor competition may justify S&P’s recent concerns. Also, competition in the global reinsurance market should not be narrowly interpreted to include only 23 reinsurers; i.e. cat bonds and other ILS’s are an important segment of the market.