Tougher reinsurance market leaves more risk for everyone else
In the insurance sector, the tail is wagging the dog.
Reinsurers are a commonly overlooked but vital breed, providing insurance to insurers. They are used to being on the receiving end of their clients’ good and bad underwriting decisions.
But, for the first time in years, it is the reinsurers that are setting the direction. Turn-of-the-year policy renewal negotiations were fraught and late, as reinsurance firms demanded steep price rises at the same time as they pared back coverage in costly areas such as natural catastrophes and those lines exposed to Russia’s war in Ukraine.
This story originally appeared on: Financial Times - Author:Ian Smith
