Reinsurance price rises
 The recent global financial crisis will lead to a double-digit growth for reinsurance rates until the next renewal season. This statement belongs to the MUNICH Re's officials and it was made while the Insurers and Reinsurers Annual Meeting in Baden-Baden.
The German group's representatives argue their statement through a growing interest of primary insurers in ceding a more important part of the risks to reinsurers, due to the international financial instability.
At the same time, reinsurers are planning to compensate the recent investment losses.
Therefore, this reinsurance demand growth along with the offer's reduction, place worldwide developed companies like MUNICH Re, HANNOVER Re or SWISS Re in a favorable position, allowing them to raise their prices, because customers are oriented towards stable partners.
The MUNICH Re's officials feel that, in the next period of time, buyers will carefully choose their reinsurers, first of all considering quality and placing the price second. In this context, smaller reinsurance companies may encounter difficulties in renewing their contracts and approaching new clients.
Media XPRIMM is represented in Baden-Baden by Alexandru CIUNCAN - Business Development Director, Georgiana OPREA - Accounts Manager and Vlad PANCIU - Coordinator, "National Insurance Coverege" ("Unde Ma Asigur?") Programme.
Author: Vlad PANCIU
on 29.10.2008
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