Demand for life reinsurance rises
While European life insurance companies are expected to buy more reinsurance at the January 1 renewals, the extra capacity being offered by reinsurers will not be enough to meet the market demand, according to an A.M. BEST analyst attending renewals in Baden-Baden.
"I would definitely expect the rates to be higher this year than they would have been two years ago for the same (reinsurance) solutions", said Vasilis KATSIPIS, general manager, analytics, for European life business at A.M. BEST Europe Ltd. in London.
For primary life insurers, declines in the equity markets have strongly impacted their capitalisation, said KATSIPIS in an interview. Even the rebound in equity market this year has not been enough to rectify the situation for some companies, he explained.
"What you have is a lot of life insurance companies that are in a strained financial position", he said.
Published on 29.10.2009
Comment this article
0 comments
|
