Reinsurance prices fell at the start of 2016 and are expected to remain under pressure in the coming months, though the pace of decline is moderating, reinsurance brokers told the Reuters news agency.
Reinsurers help insurance companies cover the cost of big claims, such as hurricanes and earthquakes, in exchange for part of the premium. But reinsurance companies have been struggling to keep their pricing power in a multi-year price decline driven by an over-supply of reinsurance capacity and weaker demand from insurers, Reuters said.
A lack of big damage claims that normally enable reinsurers to raise prices and recover costs has also hurt.
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