(Reuters) – Reinsurance levels are likely to rise in the double-digit percentage range of key renewals in January, said Denis Kessler, chairman and CEO of French reinsurer SCOR, on Wednesday.
SCOR, one of the world's largest reinsurance companies, has faced major damages due to the coronavirus pandemic and hurricane losses in the United States. This is expected to enable reinsurers to charge their customers more.
Speaking at the Reuters Events Future of Insurance Europe conference, Kessler said that the pandemic, a series of medium-sized storms in 2020, for years in a row with heavy losses and low interest rates all speak for higher prices.
"All conditions are met today for interest rate hikes," he said.
Mr. Kessler said the cost of the pandemic was mostly already reported in the reinsurer's previously published loss estimates. If there was a third wave, the company would review its assumptions, he added.
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