Major event to turn reinsurance market

International

It will take a major catastrophe event, bigger than the record losses as a result of Hurricane Katrina, to reverse the expected downturn in reinsurance pricing over the next few years, according to the UK and Bermudian insurance group, Amlin’s finance director Richard Hextall. Speaking at an industry event recently, Mr Hextall said “It’s going to take a major, major event to move the reinsurance market”, adding that not even another Katrina, the costliest insured event on record, would be enough to raise premiums. Mr Hextall said the next two to four years would be challenging for the reinsurance market, and warned that reinsurers that did not strengthen their capital bases in the aftermath of Hurricane Katrina could come unstuck if a major catastrophe coincides with the current turbulence in financial markets.