A traditional soft market is coming as alternative capital-driven pricing pressure in the reinsurance market flows to the primary market, a recent Nomura report contends.

Nomura analysts Clifford Gallant and Mathew Rohrmann say in the report—titled “The Evolution of Reinsurance: Soft Market to Spur M&A”—that one impact of the growing alternative-capital presence will be further price weakening in property/catastrophe reinsurance rates, followed by weakening across all reinsurance lines before finally affecting primary-commercial rates.

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