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Reinsurance market players are preparing for a marathon: S&P

Source: Middle East Insurance Review | Nov 2018

The reinsurance sector faces weak business conditions, even after modest price increases in 2018, said S&P Global Ratings which adds that this view remains unaltered even after it discussed reinsurance pricing and the latest market trends with reinsurers, insurers, brokers, and other market participants at the 62nd Rendez-Vous de Septembre in Monte Carlo.
 
“We have maintained our stable outlooks on the sector and most of the reinsurers we rate, based on their robust capital adequacy and strong enterprise risk management. The main discussion points this year were related to long-term issues: the pick-up in M&A activities, how reinsurers are adjusting their strategies to remain relevant, the persistence of alternative capital, whether the recent modest reinsurance price increases will carry into 2019, cyber risk, and the sector’s reserve adequacy,” S&P said.
 
To a lesser extent, the conversation also encompassed recent CAT events such as Typhoon Jebi in Japan and Hurricane Florence in the US, said the rating agency.
 
“We expect reinsurance pricing to stabilise as we head into 2019, and consider that alternative capital is here to stay,” said the agency. M 
 
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