Reinsurers benefit from higher rates, restrictive policies

A slowdown in property reinsurance price hikes next year is still anticipated.

Global reinsurers’s improved pricing, more restrictive policies, and robust investment income reaped a positive outlook, Moody’s Ratings said as reported by Reuters.

The agency highlighted that reinsurers have increased rates and adjusted their policies in response to significant losses from the COVID-19 pandemic, conflicts, and natural disasters. 

Additionally, higher interest rates have enhanced reinsurers' investment returns.

The agency also expects property reinsurance pricing to remain favourable, whilst solid balance sheets will aid reinsurers to withstand potentially high catastrophe losses.

Despite this positive outlook, reinsurance buyers anticipate a slowdown in property reinsurance price hikes next year, following several years of substantial rate increases, according to Moody's annual survey of global property and casualty reinsurers.

The reinsurance industry will convene for its annual conference in Monte Carlo next week to negotiate deals for the key 1 January renewal date.