This summer will go down as the one in which the world's biggest reinsurance companies finally attempted to draw a line in the sand, and say they were no longer prepared to live with the soft prices that have dogged their industry in recent years. Reinsurers are suffering from a glut of capital that has driven premiums down to uneconomic levels in many sectors. Until recently, reinsurers have been protected by high investment yields and unusually low catastrophe claims, but that benign conjunction has begun to unravel....more
This summer will go down as the one in which the world's biggest reinsurance companies finally attempted to draw a line in the sand, and say they were no longer prepared to live with the soft prices that have dogged their industry in recent years. Reinsurers are suffering from a glut of capital that has driven premiums down to uneconomic levels in many sectors. Until recently, reinsurers have been protected by high investment yields and unusually low catastrophe claims, but that benign conjunction has begun to unravel....
