,APAC

Price increase to stabilise reinsurance sector through 2022: Moody’s

Uncertainty brought by COVID-19 had started to diminish.

The global reinsurance sector has now stabilised as reinsurance prices increase amidst a global economic rebound, supporting the sector's earnings whilst capitalisation will remain solid according to a report by Moody’s.

"Healthy price increases will drive stronger earnings through 2022 as the post-pandemic economic recovery and recent significant catastrophe losses fuel fresh demand for reinsurance. The sector's capitalization remains solid, with solvency ratios resilient in a range of stress scenarios,” said Helena Kingsley-Tomkins, vice president-senior analyst at Moody's.

Property reinsurance prices continue to climb, driven by recent natural catastrophe losses, and a re-evaluation of secondary peril risks, including winter storms, flooding, and wildfires. Casualty pricing also remains strong across most lines because of higher demand, loss cost trends, and low investment yields.

Moody’s said that uncertainty over COVID-19 liabilities has diminished although pandemic-related claims continue to affect earnings for some large multiline reinsurers in 2021, driven by higher than expected mortality claims. The pandemic has caused reinsurers to take a more prudent stance towards systemic risk management, including communicable disease, cyber events, and climate change.

As alternative capital returns to growth in 2021, traditional reinsurers with strong third-party capital management platforms will be well-positioned to take advantage of new opportunities. For reinsurers, such platforms generate fee income while allowing them to underwrite risks and increase their market share at a lower capital cost.

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!

The insurer's shares plummeted over concerns of exposure.
RetireSavvy allows Singaporeans to adjust their retirement plans.
This is the first time that the insurance industry has taken the lead against banks.
This is part of the group’s plans to streamline its assets.
The German reinsurer anticipates growth in the P&C and health reinsurance.
It is slated to be the biggest IPO in the country.
Chan is an industry veteran with over 20 years of experience.
The company was said to be operating an unauthorized brokerage service.
Dash PET is an insurance savings plan co-created with insurer partner Etiqa.
Terms of the investment were not disclosed.
He will succeed Craig Ellis as CEO and director.
General insurance premiums to rise to 10% above pre-COVID-19 levels in 2021.
The IRDAI said that standardisation of policy wording is not desirable at this juncture.