, APAC
/Rafael Garcin from Unsplash

De-risking drives reinsurance market stability

Current claims activity is increasingly influenced by medium-sized events.

The shift in the global reinsurance market has moved towards a positive outlook, attributable to the improved underwriting margins, which are expected to remain sustainable over the next few years if current discipline is maintained, AM Best said.

Reinsurers have refocused on providing capital protection rather than stabilising earnings, following several years of underperformance. This change has been driven by a series of de-risking measures, tighter contract terms, and a move away from high-frequency layers.

Current claims activity is increasingly influenced by medium-sized events and secondary perils, rather than large-scale disasters. Hard pricing conditions are expected to persist longer than in previous cycles, supported by robust capitalisation within the sector.

Despite significant losses in the second quarter of 2024, including the collapse of the Baltimore Bridge, reinsurers are on track for another profitable year. Whilst  the rate of price increases has slowed, the market remains strong, with concerns focused on legacy US casualty and life insurance portfolios.

 

Follow the link for more news on

Join Insurance Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

Income-Allianz failed merger shows popular opinion is king
The deal faced backlash from Singaporeans who thought it betrayed Income’s social mission.
Filipino gamers hold promise for FWD
The insurer plans to support other games and aspects of the gaming ecosystem beyond esports.