soft market News

Natural Catastrophe Claims in 2017 Reached a Record $135B: Munich Re

The insurance industry will pay record claims of US$135 billion from last year’s spate of natural catastrophes, according to a report published by Munich Re. Further, Hurricanes Harvey, Irma and Maria (HIM), the Mexico earthquakes and wildfires in California created …

The Fine Art of Underwriting Through Soft & Slightly Harder Market Cycles

Twenty or so years ago, a London market marine underwriter declared he was going golfing one afternoon because he had reached his annual capacity level. That was an underwriting model commonly used in the Lloyd’s and London markets. Underwriters sat …

Property Reinsurance Rates Rise Less Than Expected in Jan. 1 Renewals

Global property reinsurance prices have risen less than expected in the key Jan. 1 renewal season, with strong competition limiting increases to single digit percentages following a record year of losses, brokers said on Tuesday. Catastrophe bond managers are launching …

Reinsurance Price Hikes May Be Short-Lived as Capacity Is Abundant

While overall market conditions may improve over the near term as a result of catastrophe events in the third quarter of 2017, A.M. Best continues to hold a negative outlook for the global reinsurance sector in 2018. In a new …

Swiss Re Posts $468M 9-Month Loss, Anticipates Re/Insurance Rate Hikes

A rise in insurance premiums, especially in areas affected by recent hurricanes and disasters, will help Swiss Re recover from almost half a billion dollars of losses in the first nine months of this year, it said on Thursday. “We …

Top Challenges for London’s Re/Insurers Are Soft Market, Brexit, Regulations: IUA

The top three challenges facing London market companies are the soft market, Brexit and regulatory compliance, according to a survey of International Underwriting Association (IUA) members. In an online questionnaire, members also cited the IT/cyber revolution, the challenge of innovating …

4 European Reinsurers Maintain Pricing Discipline in Tough Market: Fitch

The four largest European reinsurers – Munich Re, Swiss Re, Hannover Re and SCOR – have largely maintained pricing and policy terms without a significant drop in their business volumes, despite relentless soft market conditions, according to Fitch Ratings. Fitch …

Soft Rates Begin to Hit Results – But Pain Continues at Mid-Year Renewals: Willis Re

Despite the deterioration many reinsurers saw in the first quarter, mid-year renewals continued their downward pricing trajectory, according to Willis Re in a recent report. Indeed, underlying loss and expense ratios for many reinsurers are showing a worrying trend of …

Lloyd’s to Cut 10% of UK Employees on Soft Market Pricing Pressures

Lloyd’s of London is planning to cut 10 percent of its staff in the UK as the world’s oldest insurance market looks to streamline operations and reduce costs amid continued pricing pressure on its members. Lloyd’s plans to introduce a …

Reinsurance Rates Continue to Soften with No End in Sight: S&P

The global reinsurance sector is poised for yet another full year of declining rates, ensuring that a hoped-for bottom of the current market cycle will remain elusive in 2017, Standard & Poor’s said in a new report. The continued downward …