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Sept. 15 (Bloomberg) -- Swiss Re Ltd., the world’s No. 2 reinsurer, said it expects the price declines of natural- catastrophe reinsurance to will slow in 2015.
Demand for natural catastrophe reinsurance coverage will increase by about 50 percent in mature markets and 100 percent in high growth markets from 2012 to 2020, the Zurich-based company said in an e-mailed statement today.
An absence of costly disasters and increasing competition from new entrants dragged on prices this year, and reinsurers may struggle to halt the slide in 2015. Reinsurers are meeting with brokers and their clients, primary insurers, in Monte Carlo to negotiate terms and conditions of next year’s property and casualty policies.
“I’ve seen many turns of the reinsurance cycle and have learned that pricing is only one dimension of it,” Swiss Re’s Chief Executive Officer Michel Lies said in the statement. “There are opportunities for our industry - especially in high growth markets.”
Munich Re, the world’s largest reinsurer, said yesterday it sees still sees pressure on rates for its property and casualty reinsurance at the January price negotiations, adding it will withdraw from business if necessary. Swiss Re and Hannover Re are among reinsurers typically renewing about two-thirds of their annual property and casualty contracts in January.
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