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AM Best has maintained its market segment outlook on the global reinsurance industry at stable for 2021, citing factors that include positive pricing momentum, combined with tighter terms and conditions, offset somewhat by uncertainty with regard to claims reserve development associated with previous years’ property catastrophe events; social inflation; and more recently, business interruption and casualty lines, related to COVID-19.
In its new Best’s Market Segment Report, “Market Segment Outlook: Global Reinsurance,” AM Best states that the current market hardening likely will need to continue for at least a couple of years to have a meaningful impact on the segment. Additionally, pricing momentum will have to be sufficient to offset losses from previous years, including the impact of COVID-19 and ongoing impact from social inflation. At the same time, the improving pricing environment and market discipline, the re-assessment of the role of third-party capital providers following the impact of loss creep and trapped collateral, as well as the ongoing stability in the global life reinsurance segment, are viewed as positive factors.
A full complimentary copy of this report is available via the following link:
Market Segment Report: Global Reinsurance – Outlook
Watch a video about the global reinsurance market segment outlook by AM Best Associate Director Mariza Costa.