Reinsurance firms face up to price pain

first_img REINSURERS are trying to stay confident about pricing prospects for 2011 in the face of a chorus of industry observers predicting price and earnings pain.At their annual Mediterranean meeting, the world’s biggest reinsurance players have once again vowed to maintain discipline in setting prices on the contracts for risk cover they provide to insurers, saying they won’t engage in a competitive race to the bottom.Munich Re, the world’s biggest reinsurer, predicted it would maintain stable prices overall on its portfolio of business to be renewed at the start of the year, and said some prices were even rising following the sinking of an oil rig in the Gulf of Mexico and earthquake in Chile this year.French reinsurer Scor also struck an upbeat tone, even as it acknowledged that clients were driving hard bargains.“We hope by January we can show renewals that are at least stable or slightly up,” Scor chief executive Denis Kessler said. Share But brokers, credit rating agencies and other industry observers, attending the Monte Carlo meeting in force, say 2011 is shaping up to be the third year in a row that property and casualty premiums will fall.Insurance companies, who pay reinsurers to take on their risks of big claims such as for hurricanes or earthquakes, are being flexible about how much reinsurance they are using, buying less of it when it costs more, said James Eck, senior credit officer at Moody’s.“Insurers don’t expect to pay more and there would be significant resistance to higher prices,” said Eck, adding that most insurers surveyed by Moody’s said they planned to buy the same amount or less reinsurance in 2011 than they did in 2010. Monday 13 September 2010 7:33 pm KCS-content Show Comments ▼ Read This Next’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofAmazon roars for MGM’s lion, paying $8.45 billion for studio behind JamesFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily ProofTortilla Mango Cups: Recipes Worth CookingFamily ProofWhat to Know About ‘Loki’ Ahead of Disney+ Premier on June 9Family ProofCheese Crostini: Delicious Recipes Worth CookingFamily Proof whatsappcenter_img Supply is another issue. There is a lot of excess capital available to reinsurers to write business with insurance clients, following the recovery of capital markets since 2009.“While excess capital is in the market there is no catalyst to increasing rates,” said Greg Carter of credit ratings agency Fitch. by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastNoteabley25 Funny Notes Written By StrangersNoteableyMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBetterBe20 Stunning Female AthletesBetterBemoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comSenior Living | Search AdsNew Senior Apartments Coming to Scottsdale (Take A Look at The Prices)Senior Living | Search Adsautooverload.comDeclassified Vietnam War Photos The Public Wasn’t Meant To Seeautooverload.comZen HeraldThe Truth About Why ’40s Actor John Wayne Didn’t Serve In WWII Has Come To LightZen Herald Tags: NULL whatsapp Reinsurance firms face up to price pain last_img

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