Insurers expect reinsurance rates to rise by at least 5% on year-end renewals, according to a report by Moody & # 39 ;s Investors Services Inc. on Wednesday. , tighter capacity and rising trends in loss of liability, according to the report, which is based on a survey of about 40 reinsurance buyers.
According to the survey, 90% of the respondents expect price increases across all lines at the turn of the year, and no one expects reductions, which can be compared with less than 50% expected increases last year.
Reinsurance prices already increased significantly during renewals in the middle of the year. risks, with more than 50% expecting real estate rates in the US and the Caribbean between 5% and 7.5% and around 30% expecting rate hikes of 7.5% to 1
"Some cedants strive to avoid price increases by allowing conditions or raising attachment points for excess loss coverage, while others expect to waive commissions from reinsurance companies will decrease," the report says.
At the same time, reinsurance executives at Aon say PLC that interest rate hikes are likely to continue during this year's renewal season.  Reinsurers have been exposed to a "confluence of effects" on their operations, including low interest rates, three years of high disaster losses and high liability losses in the US due to "social inflation" or increased court decisions, says Andy Marcell, New York-based CEO of reinsurance solutions at Aon.
“The result, when we go into 1/1 after seeing some rate hike in the real estate reinsurance market, we expect it to continue as well. if we expect reinsurers to focus on their specific party partnership with the customers they target, he says.
He spoke during a conference call with reporters on Wednesday. Several reinsurance and reinsurance brokers have held talks this week in place of the Rendez-Vous de Septembre reinsurance meeting in Monte Carlo, which was suspended due to the pandemic.