Return of a Soft Insurance Market?

Here's why property/catastrophe rates are down double digits since 2012, and how the trend may affect other lines of insurance.

A traditional soft market is coming, as alternative capital-driven pricing pressure in the reinsurance market flows to the primary market, a recent Nomura report contends.

Nomura analysts Clifford Gallant and Mathew Rohrmann say in the report—titled “The Evolution of Reinsurance: Soft Market to Spur M&A”—that one impact of the growing alternative-capital presence will be further price weakening in property/catastrophe reinsurance rates, followed by weakening across all reinsurance lines, before finally affecting primary-commercial rates.

About the Author

Phil Gusman

Phil Gusman

Phil Gusman is a freelance journalist. Previously, he was managing editor of National Underwriter. Prior to joining National Underwriter in 2008, he was editor of Insurance Advocate. He has also served as associate editor of Crackdown!, an insurance-fraud publication, and as assistant editor of Empire State Report, which covers New York State politics. He graduated in 2002 from Plattsburgh State University in New York. Gusman may be reached at phil.gusman@gmail.com.

Originally published on PropertyCasualty360. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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