Mark A. Hofmann
11/14/2018 10:50:00 AM
Source: Business Insurance
Reinsurance rates could stabilize or increase at the Jan. 1, 2019, renewals, according to a report released by Morgan Stanley on Wednesday.
The report — State of the Industry-Fall 2018: Rising Losses; Will Pricing Follow? — noted that after last year’s record catastrophe losses, property catastrophe reinsurance pricing improved “slightly” in 2018. The authors added, however, that their meetings at Monte Carlo indicated that reinsurance pricing at the Jan. 1 renewals would be flat to 5% lower.
The report said, however, that a combination of factors could change that outlook. It said recent catastrophes including Hurricane Michael and the ongoing California wildfires, losses in the alternative markets, pullbacks from Lloyd’s of London and increasing demand for reinsurance “could stabilize or improve” reinsurance rates at the Jan. 1 renewals.