REINSURANCE RATES CONTINUE TO DETERIORATE AT RECENT RENEWAL

Reinsurance pricing continued its downward trend at June and July renewals, according to Willis Re. Despite a deterioration in results in the first quarter of 2017, the reinsurance market continued to soften as reinsurers fought to meet their premium targets, the reinsurance broker said. During Florida renewals, reinsurers faced flat demand and a larger than anticipated influx of capacity, particularly from Insurance Linked Securities (ILS). In addition, underlying loss and expense ratios for many reinsurers are showing a worrying trend, with combined ratios for many classes now looking unattractive, it said in a report. As a result, pricing fell compared with 2016 renewals, and at a greater pace than the reductions seen on US property catastrophe in January and April renewals, Willis Re said.