Reinsurance: a microcosm featuring catastrophes, inflation and capital flight
Participants in the world’s reinsurance industry are meeting in Monte Carlo. In the pricey principality, the talk is of higher premiums. Hannover Re said it would seek double-digit rate increases in 2023. Swiss Re and Munich Re have also forecast higher rates.
That news is good news for the industry but bad news for businesses and consumers. Reinsurers provide crucial financial protection to insurance companies, which are likely to pass on the increased cost in their premiums.
The hardening of the market partly reflects surging demand. The natural catastrophe reinsurance market is forecast to grow 37 per cent to $48bn over the next four years, Swiss Re said on Monday. Soaring inflation is driving up costs and the value of assets insured.
This story originally appeared on: Financial Times - Author:Faqs of Insurances
