LONDON (Reuters) – The entry of new investors like hedge funds into the reinsurance market is likely to keep prices mostly flat when European customers renew policies in January, despite the industry's losses from superstorm Sandy, broker Willis Re said.
The U.S. reinsurance broker said on Wednesday the industry, which takes on risk from insurers, would suffer up to $25 billion in losses from superstorm Sandy and that would ensure prices for property reinsurance stabilise after years of falls.
A surge in claims typically supports reinsurance prices by forcing less well-capitalised players to retrench, freeing those still in the market to charge more.
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