(Bloomberg) – Hurricane Matthew will have a limited impact on the years-long decline in rates for reinsurance, according to industry representatives, who predict primary insurers will push back against price increases at the start of 2017.
"I expect a strong likelihood for resistance to further price cuts," Ludger Arnoldussen, a member of Munich Re's management board, said at a conference in Baden Baden, Germany, on Monday. "It all doesn't look very promising if you want to be a player in the reinsurance field."
|Rejecting further price reductions in Jan.
As 2016 draws to a close, some reinsurers are rejecting further price reductions in January, when many annual property and casualty contracts come up for renewal. Michael Pickel, Hannover Re's management board member responsible for Germany, said the company won't accept renewals at less than stable or slightly higher rates.
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